Economic institutes raise growth forecast, but look to 2028 with disillusionment

The leading economic research institutes are more confident about the German economy for the next two years, but are sobering about 2028. They increased their growth forecast for gross domestic product (GDP) this year to 1.3 percent and to 1.1 percent for 2027, as shown on Thursday in the institutes' joint autumn report.

The joint diagnosis is called “Upswing with structural problems - financial policy on the wrong track.” The institutes only expect significantly lower economic growth of 0.4 percent for 2028. This would be little more than the growth potential that has diminished in recent years.