In its Spring Forecast, the Commission projects a mere 0.6% increase in Germany’s GDP for 2026, down from previous estimates, attributing this revision to soaring energy prices linked to the ongoing conflict. Inflation in the Eurozone is expected to rise to 3% by 2026, with overall EU growth projections reduced from 1.4% to 1.1%. The economic outlook remains bleak, with only a slight improvement anticipated in 2027, contingent upon stabilization in energy markets. The German government and the Institute of the German Economy have also revised their growth expectations downward, forecasting 0.5% and 0.4% growth, respectively, for the current year.