US Edition
German growth forecast cut as Europe scrambles to contain price shock from Iran war
The institutes also raised inflation forecasts to 2.8% for 2026 and 2027 as energy costs surge, they said.
- Germany's leading economic institutes cut their 2026 economic growth forecasts and sharply raised their inflation forecasts in response to the Iran conflict.
- The institutes slashed their 2026 economic growth forecast to 0.6% from the 1.3% projected in September, and lowered their 2027 growth outlook to 0.9% from a prior estimate of 1.4%.
- They also now forecast inflation at 2.8% both this year and next, up from the previous 2.0% and 2.3%, respectively, reflecting the economic fallout from the Iran war which has triggered a surge in energy prices.
64 Articles
64 Articles
Leading economic institutes warned on Wednesday that an energy crisis caused by the war in the Middle East would hit the German economy hard and sharply cut their growth forecasts for Europe's largest economy.
The Iran war and the blockade of the Strait of Hormus hit the German economy with full force: experts strongly correct their growth forecast for 2026, while inflation goes through the ceiling.
Higher fuel prices, higher inflation: the people in Germany are experiencing the effects of the Iran war. Institutes expect only a mini-growth of the economy for this year.
Associated Press News
German growth forecast cut as Europe scrambles to contain price shock from Iran war
Experts have slashed their 2026 and 2027 growth forecasts for the German economy, Europe’s biggest, while governments across the continent are introducing measures to help soften the price impact of the Iran war.
A joint forecast made by five institutions indicates that GDP should grow by 0.6% this year and 0.9% in 2027, below 1.3% and 1.4% previously planned in September
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