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 defence and infrastructure plus a cyclical upswing are supporting expansion but do not resolve underlying structural problems. Nagel flagged inflationary pressure from the Iran conflict and US tariff measures. The gov

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 defence and infrastructure plus a cyclical upswing 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.