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Deutsche Welle: German Economy Recovers Amid Instability
The German economy has recovered its vitality thanks to various factors, with research institutes predicting a growth of 1.3% in 2026, compared to lower expectations in the spring. This is supported by global demand, especially for chemical products and natural gas due to the closure of the Strait of Hormuz, as well as government investments in infrastructure and defense. However, experts indicate that this recovery is temporary, with only weak growth of 0.4% expected in 2028, due to rising energy prices, shortages of skilled labor, and an aging population, all of which threaten sustainable growth and the fairness of the heavily indebted government funding. The economy also faces additional challenges such as unclear necessary reforms for energy transition, a decline in the industrial sector, and a loss of confidence in the investment climate. Current recommendations call for decisive political and economic reforms to enhance competitiveness and ensure long-term stability.
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