The German government has trimmed its 2026 forecast for the country’s economy, Europe’s biggest, as growth picks up more slowly than previously hoped. The economy minister said Wednesday that Chancellor Friedrich Merz’s government now expects gross domestic product to expand by about 1% this year and 1.3% in 2027. In October, it had predicted growth of 1.3% and 1.4% respectively. The economy returned to modest growth last year after shrinking for two years in a row. Merz’s governing coalition took office in May, with revitalizing the economy as one of its priorities.
