IfW Lowers German 2026 Growth Forecast to 0.8 Percent
Germany's IfW institute lowered its 2026 growth forecast to 0.8 percent. Higher energy prices are expected to push inflation to 2.5 percent this year.
Xurve View
Xurve View
The Kiel-based IfW institute has adjusted its economic outlook for Germany, citing the impact of rising commodity prices. The institute now expects the gross domestic product to grow by 0.8% this year, a reduction of 0.2 percentage points from its previous winter forecast.
Much of the economic pressure stems from geopolitical tensions in Iran, which have led to a surge in global commodity costs. The institute noted that these elevated prices are expected to persist for only a few months, yet they present a significant headwind for domestic consumption.
