For textile exporters, apparel manufacturers and sourcing teams serving the German market, the comments point to an economy that the government says is moving back into growth, with official attention centred on jobs, innovation and investment-led recovery.
Chancellor Friedrich Merz says Germany is growing again after recession and stagnation, with Ifo sentiment at a one-year high in August.
For textile and apparel exporters, the remarks point to firmer demand signals in Europe’s largest economy despite war and trade disputes.
The government sees 2027 forecasts being upgraded and targets at least 1 per cent growth next year.
He made the remarks at a news conference after a two-day Cabinet retreat at Schloss Neuhardenberg in Brandenburg, as per a local media outlet. He said underlying economic indicators supported his optimism and pointed to a stronger-than-expected rise in business sentiment in August.
Germany’s Ifo Business Climate Index increased by 2.1 points to 88.8 in August, its fourth monthly rise in succession and the highest reading in a year. German economy grew 0.3 per cent in the second quarter from the previous three-month period, after contracting in 2023 and 2024 and then stagnating last year.
Merz said the recession would be overcome by the end of the year and that growth was already being recorded at good rates in the third quarter. He also said forecasts for 2027 were being revised upward and that Germany had a chance to achieve economic growth of at least 1 per cent next year. He added that the coalition remained focused on growth, jobs and innovation.
Finance Minister Lars Klingbeil said investments backed by the government’s €500 billion (~$581 billion) special infrastructure and climate fund were vital for the recovery, adding that Germany would still be in recession without the extra borrowing and investment.
Merz also said the government would review and better co-ordinate climate adaptation and heat-protection programmes after extreme summer temperatures.
Fibre2Fashion News Desk