The Federation of German Industries lowered its expectations for the growth of the German economy during the year 2026, warning of continued pressures facing the country’s industrial base as a result of rising costs, weak investment, and increasing geopolitical risks.








The Federation said that the German economy is likely to achieve growth of only 0.4% this year, compared to previous expectations that indicated growth of 1%, which reflects a greater than expected slowdown in the largest European economy.

The report indicated that the industrial sector is still suffering from accumulated challenges, including high energy prices and declining competitiveness and investments, calling on the government to implement urgent economic and structural reforms to support production and enhance Germany’s attractiveness as an industrial center.

This development comes at a time of increasing European concerns about the impact of global geopolitical tensions and trade fluctuations on economic growth during the coming period. (Reuters)