BofA Raises German Growth Forecasts, Calls the Boost a 'Fiscal Sugar Rush' with Momentum Likely to Fade
Bank of America increased its growth outlook for Germany, projecting GDP of 1.0% in 2026 and 1.7% in 2027, citing a significant fiscal impulse concentrated in 2026. Economists at the bank characterize the boost as a fiscal 'sugar rush,' driven largely by government spending rather than investment, and expect growth to decelerate below 1% annualized…