Multiple research institutions have lowered their forecasts for Germany's economic growth.

Several German economic research institutions released their spring forecast report on April 1st local time, showing that the German economy is under pressure due to the increase in energy prices caused by the US military strikes on Iran and escalating geopolitical uncertainties. #Middle East conflicts spill over to drag down the German economy# The report, jointly released by five major German economic research institutions on April 1st, predicts that the German economic growth in 2026 is expected to be 0.6%, significantly lower than the 1.3% forecasted in the previous fall. The report suggests that the delayed transmission of rising energy costs will continue to drag down the German economy in 2027. The report warns that the German economy faces the possibility of stagnation, with the future growth rate expected to decrease from the current estimate of 0.2% to zero over the next decade.