German central bank: economic recovery slows down due to war, expected to gradually grow in the coming years

The German central bank stated that the economic recovery in Germany has been slower than expected due to the impact of the Iran War, but thanks to fiscal stimulus measures, the economy will regain growth momentum in the coming years. The German central bank expects GDP growth of 0.5% in 2026, 0.8% in 2027, and 1.4% in 2028. The Governor of the German Central Bank stated that the rise in energy prices has weakened household purchasing power and consumer spending, but in the forecast period up to 2028, economic activity will regain momentum, and the recovery will benefit from the decline in energy prices, the strengthening of the global economy, and fiscal policy stimulus.