Five leading German economic research institutes, including Leibniz, Ifo and Kiel, raised GDP growth forecasts for Europe’s largest economy to 1.3% in 2026 (previously 0.6%) and 1.1% in 2027 (previously 0.9%).

India has stepped up trade negotiations with Canada and Mexico to diversify commercial ties amid disruption from US President Trump's tariff policies. New Delhi and Ottawa plan a fifth round of talks starting Oct. 5; sources say prior discussions ended last week and a pact could be signed in December during Prime Minister Modi's expected visit. India is also finalising a framework with Mexico to launch formal negotiations, though Mexico's economy ministry says it is still analysing options and no concrete or final proposal exists. Officials aim to speed progress to broaden market access.

ISTAT confirmed Italy's deficit at 3.1% of GDP last year, above the EU's 3% ceiling, delaying Rome's exit from the Excessive Deficit Procedure (EDP). The result is a political setback for Prime Minister Meloni; her government, which had hoped for an upward revision, still aims to end EU scrutiny next year but will face tighter fiscal constraints as it seeks to raise defence and energy spending amid Middle East tensions and ahead of next year's national election.