Germany – Upwards in the economic cycle
The German economic cycle appears to have turned to the upside.
Dr. Jörg Krämer, Dr. Ralph Solveen
Commerzbank Economic Research
08/28/2026
The main driver of the fairly robust growth over the past three quarters has been stronger foreign demand, while government investment has not yet risen sustainably, despite the special funds. Leading indicators offer hope that this recovery will continue. However, the continued weakness in private investment serves as a reminder that the structural problems facing the German economy will continue to hold back economic growth.
German Economy posts a fairly strong gain ...
The economic situation in Germany has taken a turn for the better. According to the latest GDP figures released last Tuesday, the German economy grew even more strongly in the second quarter than previously assumed. As a result, economic output has risen by an average of 0.35% in each of the last three quarters compared to the previous quarter. Extrapolated over the year, this corresponds to a growth rate of 1.5%, which is significantly higher than the potential growth rate, generally estimated at less than 1%.
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