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flag German growth forecast cut to 0.6% due to Middle East war energy prices.

flag Germany’s economic growth forecast for 2026 has been slashed to 0.6 percent, down from 1.3 percent, due to rising energy prices triggered by the Middle East war. flag The conflict, involving U.S. and Israeli strikes on Iran, disrupted global oil and gas supplies, leading to higher inflation and reduced consumer spending. flag Despite government infrastructure plans, economists warn the economy faces long-term stagnation due to structural challenges and aging demographics.

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