German central bank raises 2026 growth forecast

The German Central Bank has raised its economic growth forecasts for 2026, now expecting a growth rate of around 1%, significantly higher than the previous forecast of 0.5% in June. This comes amid positive performance by the German economy during the first and second quarters of the year, with growth rates of 0.4% and 0.3% respectively, supported by strong exports and a satisfied manufacturing sector. The bank's president emphasized that growth remains relatively low but is showing positive signs. He also warned about the rise of populist parties and the danger of dismantling the monetary union, stressing that the stability of the euro is essential for Germany's and Europe's economy.

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