Germany's Ministry for Economic Affairs and Climate Action on Thursday released its autumn forecast, significantly raising its 2026 GDP growth projection from 0.5% to 1.3%, marking the fastest growth since 2017. The 2027 growth forecast was also revised upwards from 0.9% to 1.1%. This upward revision is primarily attributed to strong exports in the first half of the year and a substantial increase in government spending, bringing Germany's economic growth outlook back to pre-Middle East conflict levels. The Ministry noted that the manufacturing sector performed exceptionally well despite the impact of the Middle East conflict, with global supply constraints prompting companies to stockpile energy-intensive goods in advance, providing an unexpected boost to the economy. However, the Ministry expects growth to slow to 0.6% in 2028, with ongoing geopolitical instability and elevated energy prices remaining key downside risks.