Germany halves forecast for 2026 growth
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Germany's government has halved its 2026 growth forecast to 0.9% due to rising oil and gas prices caused by the Iran conflict. The government also expects inflation to rise to 2.7% this year and 2.8% in 2027.
Germany's government has revised its growth forecasts downward for 2026 and 2027, citing rising oil and gas prices due to the Iran conflict. The new forecasts predict 0.5% growth for this year and 0.9% for next year. Inflation is expected to rise to 2.7% this year and 2.8% in 2027. The revisions follow a cut by Germany's leading economic institutes, which slashed their joint 2026 growth forecast to 0.6%. Europe's largest economy has struggled to regain momentum since the pandemic, facing increased competition from China and higher energy prices. Household consumption is expected to slow, growing by 3.2% in 2026 and 3.3% in 2027.
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