Germany's economy is expected to grow by 1% this year, slightly more than previously forecast, but reforms need to be implemented to achieve a sustainable recovery, the German Chamber of Industry and Commerce said on Tuesday. "That is too little; our competitors are more dynamic," said Helena Melnikov, managing director of DIHK, the chamber of commerce, which had previously forecast 0.7% growth in 2026. Europe's biggest economy is still struggling to gain traction as geopolitical uncertainty, high operating costs and weak domestic demand weigh on companies, with growth in 2026 driven largely by statistical and calendar effects.