Germany raises growth forecast in spite of Iran war concerns
Berlin anticipates GDP will expand by 1.3% this year and a similar rate in 2027. Germany, Europe’s biggest economy, raised its growth forecast, a rare bright spot as regional economic worries abound. Berlin anticipates GDP will expand by 1.3% this year and a similar rate in 2027 — lackluster by global standards, but nonetheless significantly up from previous estimates, with the Iran war taking less of a toll than expected. Elsewhere in the EU, the news was less upbeat: France’s 10-year bond yields climbed to highs not seen in decades, raising worries that Paris “may have crossed the line from too big to fail to too big to save, ” the Nobel Prize-winning economist Paul Krugman wrote. Political uncertainty pushed the euro toward its fifth weekly fall, capping a dismal run for European financial markets.
3% this year and a similar rate in 2027. Germany, Europe’s biggest economy, raised its growth forecast, a rare bright spot as regional economic worries abound. 3% this year and a similar rate in 2027 — lackluster by global standards, but nonetheless significantly up from previous estimates, with the Iran war taking less of a toll than expected. Elsewhere in the EU, the news was less upbeat: France’s 10-year bond yields climbed to highs not seen in decades, raising worries that Paris “may have crossed the line from too big to fail to too big to save, ” the Nobel Prize-winning economist Paul Krugman wrote.
Political uncertainty pushed the euro toward its fifth weekly fall, capping a dismal run for European financial markets.