Iran conflict threatens to stall German economic growth

The IMK institute warns that a prolonged Iran conflict could see German growth fall to 0.2% this year. Higher energy prices risk stalling the national economy.

Xurve View

A prolonged conflict involving Iran threatens to bring economic growth in Germany to a near standstill this year, according to a report released Thursday by the Macroeconomic Policy Institute (IMK). The institute warned that if Middle Eastern hostilities escalate or persist, the German gross domestic product (GDP) might expand by only 0.2% in 2026.

A large container vessel is pictured at the Altenwerder loading terminal in the Port of Hamburg, Germany, in February 2025. REUTERS/Fabian Bimmer
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