IMF cuts German growth forecasts as energy prices rise
The IMF cut Germany's 2026 growth forecast to 0.8 percent as the Iran war drives up energy costs. Higher inflation is expected to persist through next year.
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The International Monetary Fund (IMF) has significantly lowered its economic growth expectations for Germany as the ongoing conflict involving Iran triggers a surge in energy prices and inflation across the euro zone. In its latest World Economic Outlook, the IMF highlighted that Europe's largest economy is facing the steepest downgrades among major regional economies, reflecting the severe impact of geopolitical instability on global markets.
