Katherina Reiche, German Minister for Economic Affairs and Energy, speaks at the German-Israeli Economic Forum in Berlin. Elisa Schu/dpa
German Economy Minister Katherina Reiche is expected to cut the government’s growth forecast for 2026 on Wednesday as she presents the country’s annual economic report.
Weak exports could result in the government’s forecast for gross domestic product (GDP) being lowered from the 1.3% growth predicted in the autumn, analysts have warned.
The report will be published at 2:30 pm (1330 GMT).
Germany posted marginal growth of 0.2% last year after two consecutive years of recession.
Europe’s largest economy has struggled to recover from the shocks of the coronavirus pandemic and the Russian invasion of Ukraine, which caused energy costs and inflation to spiral.
Reiche has called for reforms to the tax system, the social security system and the labour market to boost growth, as well as action on high energy prices.
Chancellor Friedrich Merz has promised to turn the country’s economic fortunes around since taking office in May 2025.