The federal government projects the German economy to grow by 1 % in 2026, confirmed by Deputy Minister‑Spokesperson Steffen Meyer on Wednesday after the Cabinet meeting that approved the annual economic report. The figure had already been leaked to various media outlets beforehand.
Meyer said the growth forecast signals progress even though significant challenges remain. He explained that the recovery would be driven primarily by stronger domestic dynamism, while external headwinds are expected to ease slightly. He also noted that the discussion surrounding the report led to one of the longest Cabinet sessions in the current legislative period, although he did not specify the precise issues that required debate. He emphasized the goal of making Germany more competitive.
Economy Minister Katherina Reiche (CDU) will officially present the annual economic report in the afternoon.