Chancellor Friedrich Merz has said Germany is on the road to economic recovery, declaring that the country is growing again after three years of recession.
"We have three years of recession behind us and now we are growing again," the conservative leader said after a two-day Cabinet retreat at Neuhardenberg Castle in the state of Brandenburg outside Berlin. "Full concentration on growth," Merz pledged.
"We are heading into the remaining months of 2026 with energy but also with great confidence," the chancellor said. "We are certain that we will make further progress along this path and that by the end of the year we will be able to point to a record that speaks for itself: out of recession, out of the weakness of our economy, out of this discontent and distrust and into a new confidence."
The German economy has been in a prolonged period of weakness. As a result of the Iran war and sharp rises in oil and gas prices, only minimal growth is expected this year as well.
Signs have recently multiplied that the economic situation is improving - something Merz also pointed to.
Business sentiment in Germany improved further in August. The ifo business climate index rose again. GDP grew by 0.3% in the April-to-June period compared with the previous quarter, despite setbacks from the Iran war, the Federal Statistical Office calculated - 0.1 point higher than initially expected.
Merz said the focus of the retreat had been innovation and competitiveness.
He cited the use of artificial intelligence as an example - whether in industry, the trades, small and medium-sized businesses, defence or medicine. Germany had "unexpectedly great opportunities" in this area, Merz said.