Berlin (Urdu Point / Pakistan Point News / WAM – 02 April 2026) A German The report reduced the country’s economic growth expectations for the current and next years, in light of the impact of energy price Shocks associated with developments in middle east.
The report issued by a group of German Economic institutes reported that GDP is expected to grow by 0.6 percent in 2026 and 0.9 percent in 2027, after growth of 0.
2% in 2025, reflecting a downward revision of 0.6 percentage points for 2026 and 0.4 percentage points for 2027.
The report indicated an increase in energy Prices It has eroded the purchasing power of households and increased production costs for companies, thus limiting the purchasing power of households step of economic recovery.
The institutes expect inflation to reach 2.8 percent in 2026 and 2.9 percent in 2027, driven mainly by rising energy prices, with these pressures gradually feeding into core inflation during the coming period.