German Economy Grew in Q1 but Iran War Weighs on Outlook

Germany likely experienced modest economic growth during the first quarter of 2026, driven by resilient industrial and services output. However, the Bundesbank warned on Wednesday that the ongoing conflict involving Iran is expected to weigh heavily on the outlook for the current quarter. Europe's largest economy has faced stagnation for roughly three years, and the geopolitical tensions are now threatening government efforts to stimulate growth through significant investments in infrastructure and defense.