By Holger Hansen
BERLIN, Jan 20 (Reuters) - The German government is lowering its growth forecast for gross domestic product (GDP) in 2026 to 1.0% from 1.3%, according to a person familiar with the projections, reflecting greater economic uncertainty in international trade.
The downward revision is likely to be included in the Economy Ministry's annual economic report to be presented on January 28, the person said.
The Economy Ministry declined to comment.
According to the draft report, GDP growth in 2027
is seen at 1.3%, down from 1.4% expected previously.
The adjusted 2026 forecast is still significantly higher than the 0.2% GDP growth recorded in 2025, which followed two consecutive years of contraction.
The lower forecast comes as global trade tensions intensify, with U.S. President Donald Trump threatening to impose more tariffs on some EU member states including Germany after imposing initial levies on imported goods from the bloc last year.
The new projection is still in line with economists' expectations, which point to growth being driven by a higher number of working days and increased government investment in defence and infrastructure.
Earlier on Tuesday, the ZEW economic research institute said investor morale rose in January to its highest level since August 2021 as expectations about Germany's economic situation improve.
(Reporting by Holger Hansen; Writing by Christoph Steitz; Editing by Thomas Seythal, Gareth Jones and Hugh Lawson)
