Several research institutes predict that Germany will overcome its longest economic crisis since 1949 next year. The Ifo Institute in Munich has significantly raised its GDP growth forecast for 2026 to 1.5%, nearly doubling the original estimate of 0.8%.

Further, the Kiel Institute for the World Economy (IfW) projects a growth of 1.6% in 2026, while the Leibniz Institute for Economic Research (RWI) expects a growth of 1.5%. The German Institute for Economic Research (DIW) has also upgraded its growth forecasts, raising it from 0.2% to 0.3% for this year and projecting a substantial growth of 1.7% next year.

Despite these optimistic adjustments, the Ifo Institute warns that the long-term outlook for the coming years remains bleak, predicting only minimal growth in 2025. Experts point out that demographic changes and shifts in the labor market will pose significant challenges to future growth. Additionally, the expectations from the government's economic plan have influenced these projections, but the German government still maintains a cautious stance on the economic outlook.