ECB’s Nagel: Inflation Close to 2%; German GDP to Surpass 1% in 2027

7 November 2025

By Marta Vilar – MADRID (Econostream) – European Central Bank Governing Council member Joachim Nagel said on Friday that the ECB had succeeded in bringing inflation close to its 2% target and projected that Germany’s economic growth would exceed 1% in 2027.

In a panel discussion at the Euro20+ Conference in Frankfurt, Nagel, who heads the Deutsche Bundesbank, described the outcome of the ECB’s recent policy efforts as “good,” noting that inflation had been brought “back or close to our target.”

The ECB’s task had been “not easy,” he said, but the institution possessed the necessary tools and determination to fulfil its mandate.

Commenting on Germany’s outlook, Nagel pointed to the government’s introduction of a “huge fiscal package” and said this should support stronger growth in the years ahead.

“This year … maybe stagnation; next year, maybe economic growth is coming closer to 1% and hopefully in 2027 we are then above 1% [GDP growth],” he said.

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