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Germany Cuts 2026 Growth to 0.5%, Promises €500bn Boost

4/28/2026

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Summary

Story summary

Germany cut its 2026 growth forecast to 0.5% after the Iran war spiked energy prices.
Chancellor Friedrich Merz promised a “year of growth” backed by a €500 billion infrastructure fund.
Economist Geraldine Dany-Knedlik warned that recession risk is rising as oil supplies stay tight.
The Federal Reserve (Fed) and other G7 central banks are expected to keep interest rates unchanged this week.

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Story summary

Germany cut its 2026 growth forecast to 0.5% after the Iran war spiked energy prices.
Chancellor Friedrich Merz promised a “year of growth” backed by a €500 billion infrastructure fund.
Economist Geraldine Dany-Knedlik warned that recession risk is rising as oil supplies stay tight.
The Federal Reserve (Fed) and other G7 central banks are expected to keep interest rates unchanged this week.