Germany: Growth recovery expected in 2026 – BNP Paribas

💡 DMK Insight

Germany’s projected growth in 2026 could shift market sentiment now, especially for euro-denominated assets. Infrastructure spending is a key driver, but traders should watch for how this affects the euro and related markets in the coming months. If the anticipated recovery materializes, we might see a bullish trend in the DAX and euro pairs, particularly against the USD. However, skepticism remains about the timeline and execution of these projects, which could lead to volatility if delays persist. Keep an eye on economic indicators leading into 2025, as they will likely set the tone for how investors position themselves ahead of this growth narrative. The real story is whether the market will price in this growth too early, creating a potential sell-off if expectations aren’t met. Watch for key economic releases from Germany and any updates on infrastructure spending plans, as these will be critical in shaping market reactions.