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German Economy: DIW and Ifo Institute Raise Forecasts

Both the DIW and the Ifo Institute have revised their forecasts for the German economy upwards, despite challenges such as the energy price shock.

3 September 2026Tagblick Newsdesk

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Archive photo: German Economy: DIW and Ifo Institute Raise Forecasts — Archive photoPhoto: Alfred Gutzler · Wikimedia Commons · CC BY-SA 4.0

The German Institute for Economic Research (DIW) has raised its forecast for the German economy, suggesting an upcoming turnaround. The institutes point to strong exports and surprising economic stability, even in the face of challenges such as an oil price shock and geopolitical tensions in Iran.

The Ifo Institute has also significantly upgraded its economic forecast. Economists are optimistic, emphasizing the resilience of companies in Germany, despite a series of setbacks in recent years that have burdened the economy.

Both institutions stress that the recent developments in the German economy are turning out to be more positive than initially expected. This indicates a potential recovery, even against the backdrop of rising energy prices and increasing national debt. The forecast revisions reflect a growing confidence in the economic outlook.

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