Germany raises economic growth forecasts for 2026 and 2027 despite accelerating inflation.

Inflation in Germany rose to 3.3% in September, up from 2.9% in August, according to final data from the Federal Statistical Office.

Meanwhile, the German government raised its economic growth forecasts to 1.3% for 2026 (up from a previous 0.5%) and to 1.1% for 2027 (up from 0.9%), while projecting 0.6% growth for 2028. These revisions were driven by the economic impact of the conflict with Iran proving less severe than initially anticipated.

Germany Raises Economic Growth Forecasts for 2026 and 2027 Despite Rising Inflation Inflation in Germany rose to 3.3% in September, up from 2.9% in August, according to final data from the Federal Statistical Office.  In contrast, the German government raised its economic growth forecast to 1.3% for 2026, up from 0.5%, and to 1.1% for 2027, up from 0.9%, with growth of 0.6% expected in 2028, driven by the easing of the economic impact of the conflict with Iran compared to initial projections.