Germany Halves 2026 Growth Forecast After Hit From Iran War

Energy price shocks and Hormuz Straight disruptions have pushed inflation higher and deepened risks for Europe’s largest economy.

A steel worker of ThyssenKrupp stands amid sparks of raw iron coming from a blast furnace at a ThyssenKrupp steel factory in Duisburg, Germany, on Nov. 14, 2022. Wolfgang Rattay/Reuters

Germany’s economy ministry cut its growth forecasts ​in half for 2026 and 2027 amid the Iran war.

“The economic recovery expected for this year will once again be slowed down by external geopolitical shocks,” German Economy Minister Katherina Reiche said in an April 22 post on Facebook presenting Germany’s spring forecast.