Germany's GDP could increase by 1.1% in 2027 and 1.2% in 2028, according to Bloomberg, citing analyst estimates.
The agency reports that the economic recovery will be supported by increased spending on infrastructure and defense. In 2026, Germany's military budget is expected to exceed €100 billion, and annual infrastructure investments will reach €50 billion.
Bloomberg also notes the important role of Chancellor Friedrich Merz's economic policy, aimed at stimulating growth through business support. In particular, the government is developing measures to reduce income tax by €10 billion per year for citizens with low and middle incomes.
At the same time, analysts warn of risks to the economy, including a possible escalation of the conflict in the Middle East, which could lead to higher fuel prices. Additional risk factors include declining sales of German cars in China, US tariffs, and high domestic costs.