German institutes raise 2026 growth forecasts

The upward revision for 2026 signals growing confidence among top forecasters in a sustained German rebound, though the cited drivers—exports and fiscal spending—carry inherent fragility. Exports depend on external demand that remains uneven, while government spending faces political and fiscal constraints. This matters for the eurozone's largest economy, as its recovery trajectory influences regional growth and policy expectations. The key question is whether these two pillars prove durable enough to offset lingering structural headwinds, or if the forecasts will need another adjustment as data unfolds.