By Maria Martinez<\/p>\n
BERLIN, April 22 (Reuters) – Germany’s economy ministry on Wednesday revised its growth forecasts for 2026 \u200cand 2027 downward and raised its inflation projections, \u200cas the Iran war drives up oil and gas prices.<\/p>\n
The government now \u200bexpects 0.5% growth for 2026, down from an earlier projection of 1.0%, and cut its 2027 growth outlook to 0.9% from 1.3%, confirming a Reuters report on Thursday.<\/p>\n
“The economic \u200crecovery expected for \u2060this year is once again being held back by external geopolitical shocks,” Economy Minister Katherina \u2060Reiche said.<\/p>\n
The war in Iran is driving up energy and raw material prices, the minister said, placing financial strain on \u200bprivate households \u200band increasing costs for \u200bGermany’s economy.<\/p>\n
The ministry now expects \u200cinflation to accelerate to 2.7% this year and 2.8% in 2027, up from 2.2% last year.<\/p>\n
In addition to the war in Iran, international trade faces headwinds from protectionist measures and economic fragmentation, hindering Germany’s export-oriented economy from \u200cleveraging foreign trade to boost growth.<\/p>\n
Exports \u200bare not expected to rise year-on-year \u200buntil 2027, when \u200bthey are forecast to increase by 1.3%.<\/p>\n
Imports are \u200cexpected to grow faster, rising \u200bby 1.8% \u200bin 2027, which would narrow Germany’s trade surplus.<\/p>\n
Europe’s largest economy has been struggling since the pandemic to regain \u200bmomentum. Heightened competition \u200cfrom China and higher energy costs are posing \u200bsignificant challenges its export-driven economic model.<\/p>\n
(Reporting by Maria \u200bMartinez, editing by Kirsti Knolle)<\/p>\n","protected":false},"excerpt":{"rendered":"By Maria Martinez BERLIN, April 22 (Reuters) – Germany’s economy ministry on Wednesday revised its growth forecasts for…\n","protected":false},"author":2,"featured_media":6638,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[5,1316,6464,4827,253,1318,2379],"class_list":{"0":"post-6637","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-germany","9":"tag-growth-forecasts","10":"tag-growth-outlook","11":"tag-inflation-projections","12":"tag-iran","13":"tag-oil-and-gas-prices","14":"tag-war-in-iran"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/6637","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=6637"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/6637\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/6638"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=6637"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=6637"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=6637"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}