The latest forecast by the Institute for Applied Economic Research (IAW) and the University of Hohenheim for real gross domestic product (GDP) in Baden-Württemberg points to a positive economic outlook for 2026. This trend could continue into the coming winter. However, the underlying indicators do not paint a uniformly positive picture. The current nowcast forecasts GDP growth of 0.4 per cent for the third quarter of 2026 – seasonally and working-day adjusted. Growth of 0.3 per cent is forecast for each of the following two quarters.
The latest forecast by the Institute for Applied Economic Research (IAW) and the University of Hohenheim for real gross domestic product (GDP) in Baden-Württemberg points to a positive economic outlook for 2026. This trend could continue into the coming winter. However, the underlying indicators do not paint a uniformly positive picture. The current nowcast forecasts GDP growth of 0.4 per cent for the third quarter of 2026 – seasonally and working-day adjusted. Growth of 0.3 per cent is forecast for each of the following two quarters.
AI has made its way into businesses in Baden-Württemberg, but is not yet widely used.
AI already plays a visible role in businesses in Baden-Württemberg: 31 percent of businesses in the state use generative and/or non-generative AI. Generative AI accounts for the bulk of this usage: 28 percent of businesses use generative AI, placing Baden-Württemberg above the Germany-wide average of 24 percent. Non-generative AI is significantly less common, at 7 percent.
The IAW recently published these and other interesting findings on the use of artificial intelligence (AI) in companies in Baden-Württemberg in the IAW Brief Report 1/2026. The analysis, based on the IAB Enterprise Panel 2025, was commissioned by the Baden-Württemberg Regional Directorate of the Federal Employment Agency.
Eine empirische Analyse auf der Basis des IAB-Betriebspanels Baden-Württemberg sowie verknüpfter Linked-Employer-Employee Daten, IAW-Kurzbericht 5/2019
