Germany upgrades economic growth forecast

The German government has raised its economic growth forecast for 2026 to 1.3 percent, up from a previous estimate of just 0.5 percent in the spring. This optimism reflects an improvement in economic performance despite the repercussions of the Iran war and rising energy prices, as the German economy has demonstrated greater resilience. The growth is mainly driven by a rebound in exports, increased government investments, and higher defense spending, with the commercial sector benefiting from the global supply chain shortage crisis.

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