German Economy Faces Slow Growth and Intensifying Skills Shortage, IAB Forecast ShowsThe German economy is projected to experience minimal growth in 2026, according to the latest analysis from the Institute for Employment Research (IAB). The IAB forecasts a modest economic growth rate of only 0.8 percent for the year. Domestically, demographic trends are playing a significant role in constraining the labor market. The labor market outlook is characterized by a slight rise in unemployment, with average annual figures expected to increase by 40,000. Specifically, the industrial sector is expected to lose approximately 140,000 jobs during the year.

Source: The Munich Eye March 24, 2026 20:41 UTC