Germany’s economic outlook has improved, supported by stronger-than-expected exports and increased public investment. The country’s economy is now projected to grow by 1.2% in 2026, followed by 1.0% in 2027 and 0.7% in 2028.
The improved outlook highlights the importance of international trade and resilient supply networks in supporting economic activity. Export performance has provided additional momentum, while infrastructure and public investment are expected to play a major role in strengthening Germany’s economic capacity.
Around 70% of projected growth this year is expected to come from public consumption and investment, including spending on infrastructure, climate initiatives, and defense. A €500 billion infrastructure fund is also supporting expanded investment activity.
For supply chains, ongoing infrastructure development and investment can help improve transportation networks, industrial capacity, and the movement of goods. Key waterways and energy-intensive industries remain important factors in maintaining efficient production and distribution across the economy.
The improved forecast suggests Germany could enter a period of stronger economic expansion over the next several years, with trade, infrastructure investment, and resilient supply networks contributing to future growth.
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