IfW Lowers German 2026 Growth Forecast to 0.8 Percent

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.