00:05Germany's top economic research institutes have more than halved their growth forecasts for 2026.
00:11While economists were still forecasting growth of 1.3% last autumn,
00:16they now expect GDP to expand by only 0.6% this year and by 0.9% in 2027.
00:24The greatest uncertainty is due to the further process of the Iran-conflict.
00:29If the war is extended or lasts longer,
00:33the higher energy prices would increase the growth in Germany.
00:38It could be disturbed by supply chains or even the financial markets would fall into more turbulences.
00:44The institutes expect average annual inflation to reach 2.8% in 2026 and 2.9% in 2027.
00:54While parts of the German defence industry and civil engineering are benefiting from government spending,
01:01industry as a whole is struggling.
01:03The chemical sector is bearing the sharpest pain.
01:06Experts argued against short-term activism, in particular a cut to fuel prices.
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