Sources told Reuters yesterday that major German economic institutes have cut their growth forecasts for 2026 and 2027, while sharply raising their inflation forecasts due to the Iran war. The institutes lowered their growth forecast for this year to 0.6%, down from the 1.3% that was expected in September. The sources said that the economic institutes also cut their growth forecasts for the next year to 0.9%, from a previous estimate of 1.4%. The German export-dependent economy has been struggling to grow since the COVID-19 pandemic, facing exhaustion from Chinese competition and rising energy prices.
