Germany Could Grow 1% This Year, Bundesbank Chief Says

6:36 PM ET 10/02/2026 - MT Newswires

Nagel said the economy performed better than expected in the first half and is on a recovery path despite tariff pressures and the Middle East conflict, citing robust export demand and government investment as key drivers of the stronger outlook.

He said the recovery should be accompanied by efforts to strengthen Germany's longer-term growth drivers.

Nagel's estimate is below the 1.3% forecast from Germany's leading economic institutes but above the Bundesbank's June forecast of 0.5%.

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