The federal government has revised down its growth forecasts for 2026 and 2027 due to the war in Iran, according to exclusive information from Reuters. The official announcement of the Economy Ministry’s estimates is expected next week.

As Reuters reports, the government now expects growth of 0.5% for the current year, down from the initially forecast 1.0%, while for the following year it lowers its expectations to 0.9% from 1.3%. At the same time, Berlin expects inflation to rise to 2.7% in 2026 and 2.8% in 2027, up from 2.3% in the previous year.

In the same vein, the International Monetary Fund also revised its forecasts for Germany’s economic growth the day before yesterday, to 0.8% for 2026 and 1.2% for 2027. The reduction from its initial forecast amounts to 0.3 percentage points for both years.