German Economy Growth in 2026 Boosted by Additional Working Days

Reuters - The German economy is expected to receive a calendar boost in 2026, with a slight increase in the number of working days estimated to enhance growth by about a third, a welcome development after two years of contraction, according to Reuters. According to the German Federal Statistical Office, Germans will face a longer work year in 2026, with an average of 250.5 working days nationwide, about 2.4 days more compared to this year, marking the highest number since 2022. The increase is primarily attributed to several public holidays falling on weekends in 2026. Each additional working day typically contributes about 0.1 percentage points to GDP, based on statistics. ING Bank expects an addition of 0.2 to 0.3 percentage points to growth next year due to the impact of working days. Carsten Brzeski, global head of macroeconomic research at ING, stated, "Next year's growth will be mainly driven by government investment packages and additional working days. For skeptics, it’s still too little and a confirmation of weak 'natural' recovery. For the frustrated, at least it’s a start. When you haven’t seen any economic growth for years, you take what you can get." The German Economic Institute (IW) expects real GDP in Germany to grow by 0.1% this year after two years of contraction, before rising by 0.9% next year, with a third of this growth in 2026 coming from calendar effects.