Fashion
Germany’s GDP to rise 1.4% in 2026, 1.8% in 2027: Goldman Sachs
Germany’s economy is poised for stronger growth over the next two years, as the country’s gross domestic product (GDP) is projected to rise by 1.4 per cent in 2026 and 1.8 per cent in 2027—well above its 0.8 per cent potential growth rate and the consensus among economists, according to Goldman Sachs Research.
Chancellor Friedrich Merz’s government plans to invest €500 billion (~$580 billion) in infrastructure over the next 12 years and has amended Germany’s constitutional debt rule to enable higher defence spending. Total spending is expected to rise 2.2 per cent of GDP by 2027, Goldman Sachs said in an article.
Germany’s GDP is forecast to grow 1.4 per cent in 2026 and 1.8 per cent in 2027, surpassing its 0.8 per cent potential rate, according to Goldman Sachs.
The Merz government plans €500 billion (~$580 billion) in infrastructure spending and higher defence outlays.
While reforms could tackle labour and energy challenges, Germany remains exposed to global trade risks and structural inefficiencies.
“After years of economic underperformance, we have turned notably more optimistic on Germany’s economic outlook,” said Niklas Garnadt and Jari Stehn, economists at Goldman Sachs. They added that near-term policy efforts will likely focus on executing the fiscal package efficiently, including fast-tracking planning and permitting processes to prevent investment delays.
The fiscal expansion could also open the door to structural reforms tackling long-standing issues such as labour shortages, high energy costs, and sluggish productivity. As in the early 2000s, these measures could transform Germany into a renewed growth engine, Goldman Sachs said.
Nonetheless, challenges persist. Germany’s dependence on global trade makes it vulnerable to protectionist trends and slowing world commerce, while its reliance on traditional industries, elevated energy prices, bureaucratic inefficiencies, and skilled labour shortages continue to weigh on potential growth.
Goldman Sachs concluded that the Merz administration now has ‘a window of opportunity to build on this improved macro picture with reforms that ensure a lasting improvement in Germany’s economic performance.’
Fibre2Fashion News Desk (SG)
Consumer goods and services in the Netherlands were 2.8 per cent more expensive in December 2025 than a year earlier, according to Statistics Netherlands (CBS). This marked a marginal cooling from November’s 2.9 per cent year-on-year (YoY) reading. On a month-on-month basis, consumer prices remained virtually unchanged compared with November.
With the December data now finalised, average consumer price inflation for the whole of 2025 stood at 3.3 per cent compared with 2024, CBS said in a release.
Under the Harmonised Index of Consumer Prices (HICP), Dutch inflation eased to 2.5 per cent in December from 2.6 per cent in November. By contrast, inflation across the euro area declined from 2.1 per cent to 2 per cent, helped by lower energy prices.
Consumer inflation in the Netherlands has eased slightly to 2.8 per cent in December 2025, down from 2.9 per cent in November, according to Statistics Netherlands (CBS).
Prices were broadly stable month on month (MoM).
Average inflation for full-year 2025 came in at 3.3 per cent, while euro area inflation slowed to 2 per cent.
Fibre2Fashion News Desk (HU)
As part of this transformation, Kerstin Dorst will assume the newly created role of Senior Vice President Business Unit Womenswear as of January 15, reporting into HUGO BOSS Chief Sales Officer and Deputy CEO Oliver Timm. Dorst joins HUGO BOSS from Tory Burch, where she spent more than 10 years in New York and played a key role in growing the brand’s main collection and sportswear. Prior to Tory Burch, she worked at Adidas for over five years in Germany and Asia, contributing to the launch of the brand’s SLVR premium sportswear line, among others. In her new role, Dorst will also oversee the creative direction for womenswear collections, working closely with Marco Falcioni, HUGO BOSS Creative Director.
Hugo Boss is introducing separate menswear and womenswear business units to strengthen gender-specific expertise, unlock synergies and support its CLAIM 5 TOUCHDOWN growth strategy.
Kerstin Dorst will join as SVP Business Unit Womenswear from January 15, reporting to Oliver Timm, while Christian Schwinn continues to lead menswear across Boss and Hugo.
“With the new organizational structure, we are reshaping our business units to strengthen our focus on womenswear and lay the foundation for future growth. The new set-up will enable us to address gender-specific preferences even better and to deliver collections with a true customer centric approach in both areas in the future,” said Oliver Timm, Chief Sales Officer and Deputy CEO of HUGO BOSS. “In this context, I am pleased to welcome Kerstin Dorst in the newly created role for womenswear. Her extensive international experience and profound expertise will play a key role in taking our womenswear business to the next level in the years to come.”
The BOSS Menswear business will continue to be led by Christian Schwinn, who will additionally take on responsibility for HUGO Menswear as Senior Vice President Business Unit Menswear.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
Fibre2Fashion News Desk (RM)
In the Ludhiana market, cotton yarn prices were broadly stable, with spinning mills maintaining their selling rates due to advance export sales bookings. A Ludhiana-based trader told Fibre*Fashion, “The cotton yarn market has become highly sensitive to US tariff-related developments. After earlier threats of *** per cent US tariffs, the recent announcement of a ** per cent tariff on Iran’s trading partners has triggered fresh concerns. Buyers have turned extremely cautious and are restricting purchases to immediate requirements only.”
In Ludhiana, ** count cotton combed yarn was sold at ****;***–*** (~$*.**–*.**) per kg (inclusive of GST); ** and ** count combed yarn were traded at ****;***–*** (~$*.**–*.**) per kg and ****;***–*** (~$*.**–*.**) per kg, respectively; and carded yarn of ** count was noted at ****;***–*** (~$*.**–*.**) per kg today, according to trade sources.
Dutch inflation slips to 2.8% in December 2025
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