OREANDA-NEWS  The growth prospects of the German economy, which began to be optimistic at the beginning of the year, again turned out to be vague against the background of the situation with prices for oil and other raw materials, which jumped due to the Iranian conflict. Bild writes about this with reference to the report of the Council of Economic Experts of Germany.

According to the estimates presented in the material, the projected growth of Europe's largest economy in 2026, which previously amounted to 0.9 percent, and according to some sources, 1.1-1.5 percent, has now rushed towards zero, reaching 0.5 percent. At the same time, in 2027, the indicator is expected to reach 0.8 percent.

Experts warn that more expensive gasoline and heating reduce other household expenses. Experts estimate inflation at three percent this year. At the same time, according to economists, "things could get even worse" if the situation in the Middle East does not improve. According to the Ministry of Economy, the German economy grew by only 0.3 percent in the first quarter.

While significant economic growth is not expected in Germany, which is experiencing the longest period of economic stagnation since World War II, and unemployment is rising to multi-year highs, Berlin has entered the world's top 4 in terms of military spending, which will exceed 4 percent of GDP in 2026.