Berlin, April 2 (QNA) - German institutes lowered the country's growth expectations for 2026 and 2027, in light of the repercussions of the energy price shock linked to developments in the Middle East.
A group of five institutes said today that they forecast growth for 2026 and 2027 to be at 0.6 percent and 0.9 percent, respectively, markedly lower than prior forecasts.
The report attributed the rise of energy prices as a main driver of the lower expectations, due to the impact it will have on disposable income and production costs. The report did note that increased German government spending will help keep the economy growing despite the pressures. (QNA)