Bundesbank Cuts Germany 2026 Growth View to 0.5% as Iran War Slows Recovery
Updated
Updated · Bloomberg · Jun 13
Bundesbank Cuts Germany 2026 Growth View to 0.5% as Iran War Slows Recovery
3 articles · Updated · Bloomberg · Jun 13
Summary
Germany’s economy will recover more slowly than previously expected, with the Bundesbank now forecasting GDP growth of 0.5% in 2026, 0.8% in 2027 and 1.4% in 2028.
The central bank said the Iran war is weighing on the outlook, though fiscal stimulus should offset enough of the shock to keep growth positive and strengthen the expansion in later years.
GDP is expected to stagnate in the second quarter before edging up in the third, underscoring how weak the near-term recovery remains.
Compared with its December projections, the Bundesbank downgraded forecasts for 2026 and 2027 after warning that higher energy costs and weaker purchasing power are curbing demand and investment.