Germany’s leading economic research institutes more than doubled their joint growth forecast for this year, while a gauge of business optimism jumped to the highest since late 2025.

Germany’s small and mid-sized businesses, the so-called Mittelstand that forms the backbone of Europe’s largest economy, expressed concern about the far-right Alternative for Germany’s clear victory in a state election and urged the federal government to finally deliver on pledged reforms to revive growth.

US officials protested to Berlin after their German counterparts publicly criticized Washington’s currency intervention and took a hard line on Russia at this week’s Group of 20 meeting, according to people familiar with the matter.