Berlin: The German government has lowered its forecast for the country's economic growth in 2026. The German Ministry of Economics announced today that current projections indicate Germany's economy, the largest in Europe, will grow by 1 percent this year, a significant drop from its previous forecast of 1.3 percent.

According to Qatar News Agency, it is worth noting that Germany narrowly avoided recession in 2025, for the third consecutive year, achieving a modest growth rate of 0.2 percent. Meanwhile, the Council of Economic Experts, an advisory body to the German Cabinet comprised of five leading economists, anticipates a growth rate of 0.9 percent this year.

Tanja Gner, Managing Director of the Federation of German Industries (BDI), said that the expected economic recovery was limited and will remain fragile. The German government explained that one of the reasons for the downward revision of the forecast was that the recovery during the second half of 2025 came in below expectations, making the start of the new year more difficult.