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2025-12-18 01:56:51
[Capital Economics: German Economic Growth to Rebound to 0.8% in 2026] Franziska Palmas of Capital Economics stated that the German economy ended the year weakly. The Ifo Business Climate Index fell to 87.6 from 88.0 in December, slightly below market expectations. This decline was mainly driven by the expectations index, while the current situation index remained stable. Palmas pointed out that this indicates the long-awaited German economic recovery has not yet materialized, and fiscal stimulus measures have not yet produced significant results. Capital Economics still expects German economic growth to rebound to 0.8% in 2026 as investment eventually drives a recovery in economic activity. However, this expectation remains below the market consensus. Palmas stated, "We expect the boost from fiscal stimulus measures to be less than anticipated."
