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Germany’s GDP to rise 1.4% in 2026, 1.8% in 2027: Goldman Sachs

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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)



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India’s Gujarat state unveils Integrated Logistics Master Plan, 4 CLPs

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India’s Gujarat state unveils Integrated Logistics Master Plan, 4 CLPs



India’s Gujarat state recently unveiled its Integrated Logistics Master Plan (ILMP), along with city logistics plans (CLPs) for Rajkot, Bhavnagar, Jamnagar and Junagadh.

The initiative lays out a robust project pipeline exceeding ₹1,800 billion (~$21.6 billion) for the period 2026-2047.

India’s Gujarat state has unveiled its Integrated Logistics Master Plan, along with logistics plans for four cities.
The initiative lays out a project pipeline exceeding $21.6 billion for the period 2026-2047.
The priority areas include logistics parks, multimodal hubs and freight terminals; enhanced port-led and industrial corridor connectivity; streamlined urban freight and last-mile delivery systems.

The plans were officially launched during the Vibrant Gujarat Regional Conclave (VGRC) held in Rajkot, the Gujarat Infrastructure Development Board announced on LinkedIn.

The Integrated Logistics Master Plan provides a long-term, multimodal framework aimed at enhancing efficiency across road, rail, port, air and warehousing networks.

The initiative is designed to reduce logistics costs, strengthen supply chain resilience and support the state’s growing industrial and export ecosystem, in line with national logistics reforms and the PM Gati Shakti initiative.

The CLPs aim at tackling urban freight challenges, including congestion, last-mile connectivity, land use optimisation and environmental sustainability.

City-specific interventions are planned to improve freight movement within municipal limits while ensuring smooth economic activity and better quality of life for residents.

The priority areas of the ILMP and CLPs include development of logistics parks, multimodal hubs and freight terminals; enhanced port-led and industrial corridor connectivity; streamlined urban freight and last-mile delivery systems; digital integration and data-driven logistics planning; and promotion of sustainable and low-emission logistics solutions.

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Crisis and comeback: Can Los Angeles rebuild its garment industry?

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Crisis and comeback: Can Los Angeles rebuild its garment industry?




LA’s garment industry enters 2026 amid disruption and cautious revival.
Immigration raids, rising costs and sustainability rules continue to strain factories, while tariffs and supply-chain risks are driving limited reshoring.
Any rebound is likely to be selective, centred on specialised and higher-value production rather than a return to mass manufacturing.



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Dutch inflation slips to 2.8% in December 2025

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Dutch inflation slips to 2.8% in December 2025



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)



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