German Economy
May 29 – June 6, 2026 Updated Jun 6
Every published chapter of The Fold's coverage of German Economy, in one place — oldest to newest, updated as the story develops.
Merz’s economic advisers nearly halve Germany’s 2026 growth forecast as a second energy shock bites
The council of economic experts advising Chancellor Friedrich Merz has cut its 2026 German growth forecast to 0.5 per cent, citing the Middle East war and US trade policy, and warned of faster inflation. Unemployment has passed three million for the first time in twelve years even as Berlin deploys a €500 billion infrastructure fund.
Germany's economy stalls as Merz warns of 'critical' crossroads
Chancellor Friedrich Merz said Germany stands at a 'crossroads' and needs 'radical' steps after years of near-zero growth, with the government's own estimate pointing to just 0.5% expansion in 2026. High energy costs and falling U.S. exports continue to weigh on industry.