FRANKFURT, Sept. 17 (Xinhua) -- A German economic research institute on Thursday released a report in which it has more than doubled the economic forecast for Germany in 2026.
The Macroeconomic Policy Institute (IMK), an independent economic research institute, revised its forecast for the German economy to 1.3 percent in 2026, up by 0.7 percentage points from its previous forecast.
The institute expects the economy to grow more strongly by 1.4 percent in 2027.
The revision was made because of the stronger-than-expected exports in the first half of this year as well as increased government spending on defence and infrastructure, said the report published by IMK.
In spite of the upward revision, Sebastian Dullien, research director of the IMK warned that energy prices and economic policy are dampening consumer demand and there is no sign of a self-sustaining upswing.
Experts at the IMK urged the ECB to refrain from raising interest rates as the current monetary policy poses a downside risk to the forecast growth.
In an interview with a French newspaper earlier this month, Joachim Nagel, president of the central bank of Germany Bundesbank, said that the German economy is expected to grow more strongly than previously forecast. Nagel noted that the German economy is in a good position to grow by around 1 percent this year. ■