News from 2026-08-25 / KfW Research
KfW Business Cycle Compass August 2026
Growth against all odds
Despite the burdens arising from the war in Iran, the German economy grew by 0.3% in the second quarter compared with the previous quarter. The trend in new orders in the manufacturing sector is also still pointing upwards and sentiment indicators have brightened again. KfW Research therefore now expects price adjusted gross domestic product (GDP) in Germany to grow by an upwardly revised 1.1% in 2026 and by 1.5% in 2027. GDP forecasts for the euro area have likewise been revised upwards, whereas the inflation forecast has been trimmed somewhat.
KfW Business Cycle Compass August 2026
Further information on the KfW Business Cycle Compass
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