Germany’s leading economic institutes have raised their growth forecasts to 1.3% for 2026 and 1.1% for 2027, from earlier projections of 0.6% and 0.9%, respectively. They expect growth to slow sharply to 0.4% in 2028, underscoring structural constraints on Europe’s largest economy despite a stronger-than-expected first half of the year. The joint outlook by RWI, the Ifo institute, IfW, IWH and DIW is due for official presentation on Thursday under the title “An economic upturn marred by structural problems – fiscal policy on the wrong track.” Germany’s weak economy has remained a prominent issue in recent regional elections that produced large gains for the far right and far left.