Germany Halves 2026 Growth Forecast After Hit From Iran War

Germany cut its growth forecast for this year in half after the US war on Iran triggered a spike in energy prices for industry and households.

Output is set to grow by 0.5% this year, the Economy Ministry in Berlin said Wednesday. That compares with a January projection for a 1% expansion. The ministry also revised its outlook for next year down to 0.9% from 1.3%.