German institution lowers its domestic economic growth forecast for 2026.

The German Economic Expert Committee released its spring economic forecast report on the 27th, predicting a 0.5% growth in the German economy in 2026, a decrease of 0.4 percentage points from the forecast in the previous autumn. The committee stated that the increase in energy costs triggered by the conflict in the Middle East and the ongoing trade protectionism policy in the United States are further weighing down Germany's economic recovery. The report pointed out that the escalation of geopolitical tensions since this spring has put greater pressure on the German economy. The conflict in the Middle East and the resulting rise in energy prices not only weaken the purchasing power of residents and suppress private consumption, but also raise enterprise operating costs and hinder investment activities. The committee warned that if the tension in the Middle East continues for a longer period of time or further escalates, the German economy will face greater downside risks.