Merz Advisers Revise 2026 German Growth Forecast to Below 1%

Friedrich Merz’s advisers trimmed their German growth forecast for next year to below 1%, underscoring the scale of challenge the chancellor faces in restoring meaningful expansion to Europe’s biggest economy.

In their updated projections published Wednesday in Berlin, Merz’s Council of Economic Experts forecast 0.9% expansion in 2026, compared with a prediction of 1.0% in May. They’re more pessimistic than the government, which said last month it expects growth next year of 1.3% following near-stagnation in 2025.