The economy in Germany faces hard times. The war in Iran causes many problems. The government expects less growth in the spring of 2026. Experts call this a Konjunktur-Dämpfer. That means: The economy grows slowly or not at all.
Prices for energy and raw materials rise fast. That makes many products more expensive. Also, supply chains often fail. That makes firms and people feel unsure. The economy will be weak in spring 2026.
The industry suffers a lot. Areas like chemicals, paper and glass need much energy. They produce much less now. Since February 2022, 53000 jobs are gone. Only the oil industry does well.
At first, 2026 looked good. The economy grew by 0.3 percent. Now experts are worried about the future. The inflation was 2.9 percent in April. This is a very high value. People have less money to spend now.