{"id":78798,"date":"2026-04-22T20:00:24","date_gmt":"2026-04-22T20:00:24","guid":{"rendered":"https:\/\/www.europesays.com\/iran\/78798\/"},"modified":"2026-04-22T20:00:24","modified_gmt":"2026-04-22T20:00:24","slug":"german-government-slashes-growth-forecast-amid-iran-war-fallout-politico","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/iran\/78798\/","title":{"rendered":"German government slashes growth forecast amid Iran war fallout \u2013 POLITICO"},"content":{"rendered":"<p>Inflation to rebound<\/p>\n<p>Rising energy prices will likely push inflation back toward 3 percent this year and next, the government said \u2014 prompting financial markets to expect two European Central Bank rate hikes this year.<\/p>\n<p>ECB officials say they won\u2019t overreact to what may be a short-lived blip, but have warned that they will raise rates if they see any signs of inflation taking root again, only four years after the last such shock.<\/p>\n<p>German Economy Minister Katherina Reiche \u2014 whose past employment at energy giant E.ON has made her a target for criticism from the left and environmentalists \u2014 was quick to blame factors beyond her control for the latest downgrade.<\/p>\n<p>\u201cThe recovery that we expected this year will once again be derailed by external geopolitical shocks,\u201d Reiche told a press conference. \u201cThe war in Iran is driving energy and commodity prices through the roof. That is hurting households and raising costs for the German economy.\u201d   <\/p>\n<p>However, German business and independent economists have both accused the government of failing to do what is in its power to revive growth by undertaking sweeping reforms, including slashing bureaucracy and cutting taxes on energy and labor.<\/p>\n<p>\u201cThe cause lies with us,\u201d Peter Leibinger, president of the Federation of German Industries, <a href=\"https:\/\/bdi.eu\/de\/articles\/presse\/bdi-praesident-leibinger-der-druck-auf-die-industrie-waechst-regierung-muss-umfassende-strukturreformen-umsetzen\" target=\"_blank\" rel=\"nofollow noopener\">said earlier this week<\/a> as the country\u2019s largest business lobby predicted that industrial output would \u201cstagnate, at best\u201d this year.  Domestic costs \u201care simply too high\u201d for Germany to stay competitive, he warned. <\/p>\n<p>Reiche on Wednesday said the government \u201ccan\u2019t just ignore\u201d repeated signs of a lack of private-sector confidence. A recent survey from the German Chamber of Trade and Commerce (DIHK) found that while public investment was set to grow 8 percent this year, private-sector investment was likely to stagnate.<\/p>\n<p>Romanus Otte contributed reporting.<\/p>\n","protected":false},"excerpt":{"rendered":"Inflation to rebound Rising energy prices will likely push inflation back toward 3 percent this year and next,&hellip;\n","protected":false},"author":2,"featured_media":78799,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[2668,2670,262,15073,177,154,375,6805,3400,1120,537,12855,1004,3509,893,34,19735,207,49,2677,2044,445,51,36,226],"class_list":{"0":"post-78798","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-iran","8":"tag-banks","9":"tag-central-banks","10":"tag-china","11":"tag-competition","12":"tag-conflict","13":"tag-energy","14":"tag-energy-prices","15":"tag-energy-crisis","16":"tag-exports","17":"tag-friedrich-merz","18":"tag-germany","19":"tag-growth","20":"tag-inflation","21":"tag-interest-rates","22":"tag-investment","23":"tag-iran","24":"tag-labor","25":"tag-markets","26":"tag-middle-east","27":"tag-research","28":"tag-supply-chains","29":"tag-trade","30":"tag-united-states","31":"tag-war","32":"tag-war-in-iran"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@iran\/116450140126425579","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/78798","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/comments?post=78798"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/posts\/78798\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media\/78799"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/media?parent=78798"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/categories?post=78798"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/iran\/wp-json\/wp\/v2\/tags?post=78798"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}