Germany news: Economy set for stronger growth, wine harvest hit by drought

October 13, 2026

German wine harvest forecast to fall below recent years

Germany's wine harvest is expected to come in around 20% below the ten-year average of 8.7 million hectoliters, according to an initial forecast by the German Wine Institute (DWI).

That would put this year's yield at roughly 7 million hectoliters, below the already smaller harvests of 7.7 million in 2025 and 7.8 million in 2024. Final estimates are still outstanding from some wine-growing regions.

Yields varied considerably within regions, depending on the age of the vines and how well the soil retained water.

Older vines, with their deeper roots, weathered this year's drought surprisingly well, the institute said. They have adapted to increasingly dry conditions in recent years.

Younger vineyards and vines growing in soils that retain less water suffered more visibly from water shortages and needed irrigation where possible.

October 13, 2026

IMF nearly doubles German growth forecast to 1.3%

The International Monetary Fund (IMF) has raised its forecast for German economic growth this year to 1.3%, almost double the 0.7% it predicted in July.

It now expects Europe's largest economy to expand by 1.1% in 2027, an upward revision of 0.1 percentage points.

The figures match the German government's forecasts released last week. The Economy Ministry said the economy had proved more resilient than expected despite higher energy prices and uncertainty over US tariffs.

Government investment in infrastructure and defense, alongside stronger exports, has helped support the recovery. German suppliers are also benefiting from investment in artificial intelligence.

The IMF slightly raised its global growth forecast for 2026 to 3.1%, from 3.0%, while keeping its projection for next year unchanged at 3.4%.

Strong investment in AI has helped offset the energy shock caused by the war in the Middle East. Higher oil production outside the Gulf, releases from strategic reserves and weaker demand in China have also cushioned the impact.

The IMF raised its eurozone growth forecast for this year by 0.2 percentage points to 1.1%. It still expects growth of 1.2% in 2027.

However, higher energy prices and weak consumer confidence continue to weigh on the currency bloc's economy.

October 13, 2026

Welcome to our coverage

Guten Tag from the DW newsroom in Bonn.

You join us as we receive some rare good news for Germany's economy.

The International Monetary Fund (IMF) has almost doubled its growth forecast for Europe's largest economy this year, raising it from 0.7% to 1.3%.

That's quite a turnaround from July, when the outlook was considerably gloomier.

That said, it doesn't look like a bumper year for German wine. The country's wine harvest is expected to come in around 20% below the ten-year average.

Stay with us here for these stories and more of what Germany is talking about today.