(den-news.net) – The Bundesbank, in its semiannual forecast, has projected a gradual and positive trajectory for the German economy over the next several years. According to the institution’s assessment, gross domestic product is expected to expand by 0.9 percent in 2026, followed by a further increase of 1.3 percent in 2027. These figures suggest a steady recovery path, particularly when contrasted with the very modest growth of 0.1 percent estimated for the current year, which underscores the limited rebound that preceded the new outlook.

The analysis was attributed to several interrelated developments. Rising levels of public investment are anticipated to stimulate demand and infrastructure modernization, while wage growth is expected to strengthen household consumption. In addition, improved export performance, driven by global demand for German goods and services, has been identified as a crucial factor supporting the resurgence of economic activity. Together, these elements form the basis of the Bundesbank’s cautiously optimistic forecast.

Speaking in Frankfurt, Bundesbank President Joachim Nagel emphasized that the combination of higher government spending, stronger labor income, and expanding trade volumes indicated that the German economy was regaining momentum after a period of stagnation. His remarks highlighted the view that structural improvements and external demand are beginning to reinforce one another, thereby creating conditions for more sustainable growth.

This projection reflects not only short‑term stabilization but also a medium‑term expectation that Germany’s economic performance will be bolstered by coordinated fiscal measures and favorable labor market dynamics.