Germany Upgrades 2026 Growth Outlook Amid Export Surge

While peer institutions including Ifo, DIW, and RWI have similarly adjusted their outlooks, IMK analysts remain cautious regarding the durability of this momentum. The recovery faces persistent drag from elevated energy prices and a pervasive lack of clarity in long-term fiscal policy. These headwinds are stifling household sentiment, leaving private consumption to contribute a negligible 0.1 percentage point to this year's GDP growth. Unless these structural pressures on consumers subside, the path toward a stable economic expansion remains narrow.