Positive expectations for the German economy are strengthening!
According to the Ifo Institute, the business expectations index rose from 89 to 90.4 points in September compared with the previous month.
Germany’s business outlook has reached its highest level since 2025. According to the Ifo Institute, the business expectations index rose from 89 to 90.4 points in September compared with the previous month. This marks the fifth consecutive monthly increase and exceeded economists’ forecast of 89.3 points.
Companies’ assessment of their current business situation also improved in September. The corresponding index rose from 88.5 to 89.5 points. The business confidence index increased from 88.8 to 89.9 points.
Ifo Institute President Clemens Fuest said that the recovery of the German economy is continuing. The country’s leading economic research institutes have also raised their growth forecast for 2026 to 1.3% after stronger-than-expected results in the first half of the year. However, high oil and gas prices continue to put pressure on economic activity. Geopolitical uncertainty and domestic political risks also remain key challenges for the German economy.