Germany news: Recession looms as Iran war chokes growth
Key takeaways
- Economists say Germany is edging toward recession as an energy shock caused by the Iran war takes a chunk out of growth.
- 06/10/2026June 10, 2026Energy shock risks pushing Germany into recessionGermany is facing the possibility of a recession as an energy price shock triggered by the Iran war weighs on growth.
- Economists at the DIW Berlin say that output is likely to shrink slightly in the spring and summer quarters.
Why this matters: an international story with cross-border implications worth tracking.
Economists say Germany is edging toward recession as an energy shock caused by the Iran war takes a chunk out of growth. Meanwhile, police have carried out raids on a suspected international drug ring. DW has the latest.
https://p.dw.com/p/5F8A6The Iran war is starting to hit businesses that were already dealing with tough conditions Image: Joern Pollex/Getty Images Advertisement Skip next section What you need to know What you need to know Germany is facing a possible recession as the Iran war causes an energy shock Two quarters of contraction would mark a technical recession One main suspect has been arrested as authorities crack down on a suspected cross-border drug network German Chancellor Friedrich Merz says he expects a "clear win" in Germany’s World Cup opener against Curacao Here are the latest headlines from Germany on Wednesday, June 10:
06/10/2026June 10, 2026Energy shock risks pushing Germany into recessionGermany is facing the possibility of a recession as an energy price shock triggered by the Iran war weighs on growth.