Germany’s Growth Won’t Last Without Reforms, Advisers Warn

Germany’s economy is set for a rebound thanks to rapid fiscal expansion, but the boost will prove temporary unless the government addresses underlying issues, according to the country’s leading research institutes.

Gross domestic product will rise 0.2% this year following two years of contraction, they said in a joint forecast issued twice a year. Growth is then seen picking up to 1.3% in 2026 and 1.4% in 2027. The projections for this year and next are roughly unchanged from the institutes’ spring report.