The German Economy Ministry said the economic impact from the Iran war has been less severe than previously feared and raised GDP forecasts to 1.3% for 2026 (from 0.5%) and 1.1% for 2027 (from 0.9%); 2028 is projected at 0.6%. The revised outlook aligns with major German economic research institutes. The government said debt-funded infrastructure investment and higher defence spending are the primary drivers of the recovery. Exports are forecast to contribute, rising 3.7% in 2026 and slowing to

The German Economy Ministry said the economic impact from the Iran war has been less severe than previously feared and raised GDP forecasts to 1.3% for 2026 (from 0.5%) and 1.1% for 2027 (from 0.9%); 2028 is projected at 0.6%. The revised outlook aligns with major German economic research institutes. The government said debt-funded infrastructure investment and higher defence spending are the primary drivers of the recovery. Exports are forecast to contribute, rising 3.7% in 2026 and slowing to 2.1% in 2027 and 1.1% in 2028.