Overview
- The government’s Jahreswirtschaftsbericht lowers the 2026 growth forecast to 1.0% from 1.3% and keeps unemployment at 6.2%, according to the report presented Wednesday.
- Growth is described as being propelled chiefly by debt-funded infrastructure and defense spending, with public investment accounting for 16% of total investment.
- The ministry pegs medium-term potential growth at roughly 0.5% annually, compared with an EU average above 1%.
- Economics Minister Katherina Reiche backs a shift to a weekly maximum working-time limit and higher annual working hours, while warning that further increases in social contributions are untenable.
- A Forsa survey for RTL/N‑TV shows only 18% satisfied with Reiche’s performance and 67% not satisfied, with Chancellor Friedrich Merz at 25% satisfaction and 73% not, as business groups and CDU factions press for stronger reforms before the late‑February party meeting in Stuttgart.