BERLIN, 2nd April, 2026 (WAM) — A German report has lowered forecasts for economic growth in the country for the current and coming years, in light of the impact of energy price shocks linked to developments in the Middle East.
The report, issued by a group of German economic institutes, stated that gross domestic product is expected to grow by 0.6 percent in 2026 and 0.9 percent in 2027, following growth of 0.2 percent in 2025, reflecting a downward revision of 0.6 percentage points for 2026 and 0.4 percentage points for 2027.
The report indicated that rising energy prices have eroded household purchasing power and increased production costs for companies, thereby limiting the pace of economic recovery.
The institutes forecast that inflation will reach 2.8 percent in 2026 and 2.9 percent in 2027, driven mainly by higher energy prices, with these pressures gradually feeding into core inflation over the coming period.
