BERLIN / LONDON (IT BOLTWISE) – Economists in Germany have revised their growth forecasts for 2026 slightly downwards. Instead of an expected growth of 1.0 percent, they now expect an increase of just 0.9 percent. This adjustment reflects the ongoing structural challenges facing the German economy.
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Economists in Germany have revised their growth forecasts for 2026 slightly downwards. Instead of an expected growth of 1.0 percent, they now expect an increase of just 0.9 percent. This adjustment reflects the ongoing structural challenges facing the German economy. The main problems include high energy prices, rising social security contributions and excessive bureaucracy, which are hampering growth.
In its current annual report, the Council of Experts pointed out that the planned spending of the special fund worth billions on infrastructure and climate neutrality will only have a small positive effect on the gross domestic product. The reason for this lies in the current use of the funds, which are largely used for reallocations in the budget and to finance consumptive expenditure, such as the mother’s pension. The economists emphasize that the impact would be significantly greater if the funds were used entirely for additional spending and investments.
Economists have slightly increased their growth forecast for the current year to an increase of 0.2 percent, after expecting stagnation in the spring. This adjustment shows that there is a slight improvement in the economic situation, at least in the short term. Nevertheless, the German economy remains in a phase of weakness that has been going on for years.
Another topic that economists address is inheritance tax. They advocate reform because different types of assets are taxed unevenly when it comes to inheritance and gifts. Business assets in particular receive strong tax advantages. However, there is a different opinion on this position from council member Veronika Grimm, who has a different perspective on the taxation of business assets.
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