Germany’s economy could achieve growth of around 1% in 2026, provided rising global trade tensions—particularly new U.S. tariffs—are avoided. While the outlook points to gradual recovery, industry leaders note that the manufacturing sector remains in a delicate position, highlighting the need for policies that strengthen competitiveness and support export-driven growth.
With Germany’s economy closely tied to international trade, industry representatives are urging policymakers to focus on measures that protect market access, encourage investment, and safeguard jobs. As uncertainty in global markets persists, maintaining stable trade relations is seen as a key factor in sustaining economic momentum across Europe.
European unity and resilience were emphasized as essential in responding to potential tariff pressures. A competitive and coordinated approach within the EU is viewed as critical to ensuring that European exporters can continue to operate from a position of strength in global trade.
While overall economic growth may outpace industrial expansion in the near term, targeted reforms are expected to help revitalize the sector. These include reducing bureaucratic hurdles, accelerating approvals for industrial projects, and introducing more flexible working arrangements to boost productivity.
Industry groups have also highlighted the potential benefits of easing regulatory burdens and advancing corporate tax adjustments, measures that could stimulate trade, investment, and industrial output as early as 2026. Together, these steps aim to reinforce Germany’s role as a key player in European and global trade.
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