German Chancellor Merz says economy is accelerating as IMF lifts 2026 growth forecast to 1.3%

EASTORA REPORT | German Chancellor Friedrich Merz said Tuesday that Germany’s economy is gaining momentum despite geopolitical pressures and higher energy prices, pointing to an upgraded IMF growth forecast as he sought to attract international investment.

Speaking at the government’s Invest in Germany Summit in Berlin, Merz said the IMF had raised its 2026 growth forecast for Germany to 1.3%. The IMF’s October outlook projects growth of 1.3% this year and 1.1% in 2027.

Merz said Germany remained among the world’s leading economies in output per hour worked and highlighted the country’s education system, research institutions and capacity for innovation. Germany’s own economic ministry says productivity levels remain high by international and European standards, although productivity growth has lagged the U.S. in recent decades.

The chancellor said Germany was already seeing stronger growth, rising foreign direct investment and increased startup creation. His government is seeking investment in sectors including artificial intelligence, semiconductors, energy, infrastructure and defense.

Merz also pointed to closer ties between the European Union and Canada, describing Canada as more pro-European than before and predicting that other countries would move closer to Europe as well.