03.09.2026 • 25/2026
Economic Outlook: German economy on a recovery path – Tailwinds from the global economy and fiscal policy
An increase in foreign demand has put the German economy on a recovery path in the first half of the year, despite higher energy prices. In the coming quarters, rising public investment is expected to support economic activity. According to the autumn forecast of the Halle Institute for Economic Research (IWH), gross domestic product (GDP) is projected to grow by 1.4% this year and by 0.8% in 2027. Economic recovery in eastern Germany is expected to be somewhat weaker. In June, the IWH economists had predicted growth of 0.9% for both this and the next year.
Oliver Holtemöller
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12.03.2026 • 8/2026
Oil price shock threatens recovery in Germany
Globally rising energy prices in the wake of the new Gulf War are clouding the outlook for the German economy. Nevertheless, increased public expenditure is expected to support economic activity both this year and next. According to the spring forecast of the Halle Institute for Economic Research (IWH), output is projected to grow by 0.7% in 2026 and by 1.0% in 2027. We expect similar rates of expansion for East Germany. In December, the IWH economists had predicted growth of 1.0% for both 2026 and 2027.
Oliver Holtemöller
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14.01.2026 • 2/2026
Compliance with the EU fiscal rules requires extensive consolidation – Medium-term projection of macroeconomic developments and public finances in Germany
Germany faces considerable structural burdens from both macroeconomic and fiscal perspectives, as potential growth is likely to be significantly lower than in past decades. A projection by the Halle Institute for Economic Research (IWH) on macroeconomic developments up to the year 2040 shows that, under unchanged fiscal policies, public debt can be expected to continue rising. The federal government's fiscal-structural plan assumes compliance with EU requirements, but this is only achievable under the assumption of high global spending cuts that have not yet been specified in detail.
Oliver Holtemöller
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Macroeconomic Reports
Macroeconomic Reports Local and global: IWH regularly provides current economic data – be it about the state of the East German economy, the macroeconomic development in Germany…
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Economic Outlook
IWH Autumn Forecast 2026 German Economy on a Recovery Path – Tailwinds from the Global Economy and Fiscal Policy September 3, 2026 An increase in foreign demand has put the German…
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Halle Institute for Economic Research
German economy on a recovery path – Tailwinds from the global economy and fiscal policy An increase in foreign demand has put the German economy on a recovery path in the first…
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Assistant Professor (W1) in Financial Economics
Job Vacancy Assistant Professor (W1) in Financial Economics The Faculty of Economics and Management of Otto von Guericke University Magdeburg (OvGU) in cooperation with the Halle…
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Output
EU Initiative TSI ProdTool 2025-2028 Find all recent project updates, reports, and event details below: IWH-CompNet 2nd ProdTool Workshop › 21-22 OCTOBER, 2026 - BRUSSELS, BELGIUM…
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Policy Output
Reports › CompNet’s flagship and special reports provide in-depth, data-driven analysis on productivity, competitiveness, and related economic trends, using the latest CompNet…
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IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for Economic Research (IWH) presents the Institute’s research on the topics of corporate bankruptcy,…
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