Banking Association Significantly Lowers Growth Forecast for Germany – to Just 1 Percent

Welt

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The Iran war and the blockade of the Strait of Hormus are increasingly burdening the economy in Germany. Now the economists of private banks are reducing their forecast for the current year.

berliner-sonntagsblatt.de

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Private banks in Germany are forecasting economic growth of 1.0 percent for the current year, 0.4 percentage points lower than last fall. According to the banking association's forecast, reported by "Welt am Sonntag," consumer prices are expected to rise by 2.6 percent. For 2027, the banks anticipate economic growth of 1.5 percent. However, this forecast is subject to considerable uncertainty due to the Iran-Iraq War. The assumption is that ener…