BERLIN, Dec 11 (Reuters) – Germany’s economy has stabilised at a low level but remains stuck in a phase of ‍only meagre growth, with a planned fiscal expansion from next year set to provide limited momentum, the Kiel Institute said on Thursday.

The German economic institute forecasts growth of 1.0% next ‌year, down from its autumn ‌forecast of 1.3%, and 1.3% in 2027, slightly above the 1.2% previously expected.

Growth of only 0.1% is forecast for this year following two years of economic contraction.

The think tank said strong headline growth rates in 2026 ‍and 2027, driven partly by government stimulus and more working days, would mask persistently weak underlying conditions.

“A ‍self-sustaining upswing is still not in sight,” the report said.

Germany’s general government budget defi

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