German Growth Forecast Cut in Half on Iran War, Advisers Say

Germany’s economy will grow at less than half the pace expected just a few months ago due to the conflict in the Middle East, according to the country’s leading research institutes.

Gross domestic product will rise 0.6% this year, they said in their bi-annual forecast published Wednesday. That’s a sharp downgrade from the 1.3% growth predicted in September as faster inflation curbs private consumption. They see GDP increasing 0.9% in 2027.