DOMESTIC DEMAND WILL DRIVE GERMAN RECOVERY IN 2026

Germany's economy will next year experience its first domestically-driven recovery since reunification, breaking with decades of export-led growth, a forecast by the Macroeconomic Policy Institute IMK showed on Wednesday.

The institute projected GDP growth of 1.2% in 2026, up from a meagre 0.1% this year. The recovery will be fuelled by government investment and rising private consumption rather than foreign trade, which remains weak.

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