Germany Slashes Growth Forecast as Iran Conflict Drives Energy Shock

53 articles · Updated · Reuters · Apr 21

Germany has halved its 2026 economic growth forecast to 0.5% due to the energy shock from the US-Israeli war on Iran.
Rising oil and gas prices have pushed up inflation and manufacturing costs, with inflation reaching 2.7% in March, the highest in over two years.
The government faces criticism for its response, as businesses and economists call for deeper reforms to boost long-term growth amid ongoing economic challenges.

How will Germany's economic crisis affect its ambitious plan to raise defense spending to 5% of GDP?

With Middle East LNG cut off, how vulnerable is Germany to US political pressure via its gas supply?

Can Chancellor Merz’s government deliver the reforms needed to save Germany's industrial base?

As a second energy shock hits, is Germany about to drag the entire Eurozone into recession?

Is the Middle East war a convenient scapegoat for Germany's deep, pre-existing structural problems?

Beyond energy, how will the Strait of Hormuz closure trigger a global food and supply chain crisis?