Bundesbank President Nagel said Germany’s economic recovery is running faster
than previously expected and recent data may prompt the Bundesbank to raise its
growth forecast next month. He warned the government must continue structural
reforms, noting that higher public spending on defense and infrastructure plus a
cyclical upswings are supporting expansion but do not resolve underlying
structural problems. Nagel flagged inflationary pressure from the Iran conflict
and US tariff measures. The government has raised its 2026 GDP growth forecast
to 1.3%; Nagel said Germany has regained some cyclical growth momentum.
