The Bundesbank forecasts that German economic growth will remain subdued until 2028 due to the fallout from the Iran war. The downgrade signals prolonged weakness in Germany's economy, affecting employment, inflation trajectories, and policy options for fiscal and monetary authorities. Bundesbank analysts, German federal government, international investors, and the broader German economy. Extended low‑growth outlook, potential fiscal stimulus announcements, and heightened market sensitivity to geopolitical developments. The Bundesbank projects that the ongoing Iran conflict will suppress German economic expansion until 2028, revising growth expectations downward. It cites a lack of quick recovery and underscores the need for a fiscal stimulus package to revive investment.
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