Merz sees economic recovery in Germany
Federal Chancellor Friedrich Merz can see signs of economic recovery and expects further progress.
Neuhardenberg (d.de) – Federal Chancellor Friedrich Merz can see signs of an economic recovery in Germany. Following the two-day cabinet retreat in Neuhardenberg, he said: “We have lived through three years of recession, but are now back on the growth path.”
Merz listed growth, innovation and competitiveness as the key issues that the Federal Government would be focussing on over the last few months of 2026. He said that the aim was to achieve a turnaround by the end of the year: “We need to move beyond the recession, beyond our economy’s weaknesses, beyond dissatisfaction and distrust and towards a new optimistic stance.” The Federal Chancellor also mentioned that he believed artificial intelligence to offer great future opportunities in areas such as industry, skilled crafts and trades, arms and medicine, as well as for medium-sized enterprises.
Economic growth is once more expected to remain on a moderate level this year, owing to the Iran war and the steep increase in oil and gas prices. The Ifo business climate index rose further in August, nevertheless, and gross domestic product increased by 0.3 percent in the second quarter compared to the first.
