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German Institute Boosts 2026 Growth Outlook
The German Research Institute for Economic Analysis projects that Germany's economic growth will increase from 0.5% to 1.2% in 2026, supported by export performance that exceeded expectations. The outlook also anticipates growth of 1% in 2027 and 0.7% in 2028. The report notes that the strength of foreign trade and stable oil prices have contributed to the improved performance, despite challenges related to rising energy costs and reduced water levels in river routes, which could impact the chemicals and metals sectors during the winter season. Experts emphasized that government investments, especially in infrastructure and defense, will remain a key driver of growth, though there are risks associated with global geopolitical tensions.
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