BERLIN: German Chancellor Friedrich Merz said restoring economic growth will be the government's main priority in 2026, after acknowledging that earlier steps have not been enough to strengthen Germany's competitiveness.
In a letter sent at the start of the year to members of his governing coalition, Merz described the economic outlook as "very critical in some areas, " according to a document cited by German news agency dpa.
In 2026, Germany would need to focus on decisive political and legislative action to substantially improve conditions for businesses, Merz wrote, stressing that only then could the economy return to growth, reports Xinhua news agency.
Germany's economy shrank in both 2023 and 2024. Winter forecasts released in December 2025 by several major German economic institutes projected growth of just 0.1 per cent in 2025, pointing to weakening external demand, including a marked fall in exports to the United States.