Germany’s economy may see growth in 2026, but only if the new coalition’s massive investment plan is effectively implemented, experts say.
Three leading economists forecast that Germany’s economy could grow by 1% in 2026, provided the new €500 billion investment package from Chancellor Friedrich Merz’s government is properly executed. After years of stagnation driven by the pandemic, the energy crisis, and a weakened car industry, the EU’s largest economy remains in critical condition. Experts believe the new coalition’s focus on infrastructure, defense, and energy reform could bring recovery—especially if supported by green energy solutions and digital innovation. However, risks remain, including high energy costs, slow digitalization, and potential trade tensions with the U.S. under President Trump.
The transition to electric vehicles could also cost up to 140,000 jobs by 2035 unless the auto sector adapts swiftly. Economists stress the need for strategic diplomacy, technological investment, and diversified trade to ensure lasting growth.
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The International Atomic Energy Agency (IAEA) has reported that explosions were heard and smoke was seen near Ukraine’s Zaporizhzhia Nuclear Power Plant.
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According to the German Research Centre for Geosciences (GFZ), a magnitude 5.7 earthquake struck the Oaxaca region of Mexico on Saturday.
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Germany’s cabinet has approved a draft 2026 budget on Wednesday featuring record investments and a borrowing level nearly three times higher than last year’s, aiming to strengthen infrastructure and defence while efforts to revive growth.
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