Ifo Warns High Energy Prices May Cut German Growth to 0.6%
Ifo warns high energy costs may cut 2026 growth to 0.6%. Government spending on defense and infrastructure should support the recovery as inflation nears 3%.
Xurve View
Xurve View
The Ifo institute has issued a warning regarding the economic outlook for Germany, noting that sustained high energy costs could significantly dampen growth over the coming years. According to the latest projections released on Thursday, the institute anticipates that if energy prices driven by the conflict in Iran remain elevated for an extended period, it could shave 0.2 percentage points off the current growth forecast.
