erman institutes cut 2026, 2027 growth

Germany's leading economic institutes cut their growth forecasts for this year and next on Wednesday and sharply raised their forecasts for inflation as the Iran war causes oil and gas prices to surge.



The five institutes slashed their joint 2026 economic growth forecast to 0.6% from the 1.3% projected in September and lowered their 2027 growth outlook to 0.9% from a prior estimate of 1.4%, as reported on Tuesday.



They forecast inflation would be 2.8% in 2026 and 2.9% in 2027, up from previous projections of 2.0% and 2.3% respectively.