[Germany’s major economic research institutions more than doubled their GDP forecast for this year, and the economic outlook improved] September 24th, Germany’s major economic research institutions more than doubled their collective expectations for this year’s economic growth, while a business confidence indicator rose to the highest level since the end of 2025. The research houses said on Thursday they expected Germany's gross domestic product (GDP) to grow 1.3% in 2026, up from a spring forecast of 0.6%, mainly due to stronger-than-expected economic performance in the first half of the year. Meanwhile, the Ifo economic institute said its expectations index rose to 90.4 in September from a revised 89 level in the previous month. It was the fifth month in a row that the indicator had been higher, while beating the median forecast of 89.3. These research institutions predict that Germany's economic recovery will continue in 2027, with the economy expected to grow by 1.1%, mainly driven by the consumption and housing sectors. By 2028, economic growth is expected to slow to 0.4% as the size of the labor force shrinks and lower potential growth limits output. The economic forecast for the German Ministry of Economic Affairs is compiled twice a year by DIW Berlin, the Ifo Institute, the Kiel Institute for the World Economy, the IWH and the RWI.