Germany's economic growth set to accelerate in 2026-2027 despite global shocks

Germany is projected to experience a sharp acceleration in economic growth in 2026 and 2027, despite facing multiple shocks including US tariffs, the Middle East conflict, and intensifying competition from China. After emerging from recession in 2025 with modest growth, the economy is expected to more than double its growth rate in 2026, supported by large-scale investment plans launched the previous year. Early 2026 figures are already showing encouraging signs. However, structural challenges remain, including reliance on traditional industries and high exposure to the Chinese market.