The logo of the International Monetary Fund (IMF) is pictured on the facade of the conference building on Pennsylvania Street. Soeren Stache\/dpa <\/p>\n
The International Monetary Fund (IMF) expects the German economy to grow by 0.9% in 2026, significantly lower than Berlin’s own forecasts.<\/p>\n
The IMF’s World Economic Outlook, released on Tuesday, predicts that Europe’s largest economy will see gross domestic product (GDP) rise 0.2% in 2025, ending a run of two consecutive years of recession.<\/p>\n<\/p>\n
However, its forecast for 2026 is well under the German government’s prediction of 1.3% growth, based off optimistic expectations of domestic demand.<\/p>\n
Berlin’s rosier outlook is premised off stable prices, wage increases and tax relief, along with rising employment and a debt-financed spending spree on infrastructure and defence.<\/p>\n
The Washington-based IMF, on the other hand, sees greater risk from global trade uncertainties for the export-driven German economy, opting to leave its July forecast for 2026 unchanged in the latest report.<\/p>\n
In contrast, the outlook for the eurozone has improved slightly, with growth now expected at 1.2% this year versus 1% in the previous prediction.<\/p>\n
The fund said the 20-member currency bloc has been supported by “resilient” intra-European trade even as exports to the United States have declined sharply.<\/p>\n
For 2026, the fund projects eurozone growth of 1.1%, a notch lower than previously anticipated, citing persistent uncertainty in trade policy and a lack of clear, long-term agreements following the introduction of US tariffs on European goods.<\/p>\n","protected":false},"excerpt":{"rendered":"The logo of the International Monetary Fund (IMF) is pictured on the facade of the conference building on…\n","protected":false},"author":2,"featured_media":499052,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5310],"tags":[2000,299,8387,1824,12705,163858],"class_list":{"0":"post-499051","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-eu","9":"tag-europe","10":"tag-german-government","11":"tag-germany","12":"tag-international-monetary-fund","13":"tag-pennsylvania-street"},"share_on_mastodon":{"url":"","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/499051","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=499051"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/499051\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/499052"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=499051"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=499051"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=499051"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}