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Germany: No recovery in sight for the economy

DW English · May 27, 2026, 4:30 PM

Key takeaways

  • The war in Iran has dashed hopes for economic growth.
  • https://p.dw.com/p/5EQS2The panel of economic experts presented their grim outlook on Wednesday in Berlin Image: ABBfoto/picture alliance Advertisement.
  • The Council's latest report provides no cause for the German government to celebrate.

Why this matters: an international story with cross-border implications worth tracking.

The war in Iran has dashed hopes for economic growth. Germany's pension and healthcare systems are also feeling the strain.

https://p.dw.com/p/5EQS2The panel of economic experts presented their grim outlook on Wednesday in Berlin Image: ABBfoto/picture alliance Advertisement. It was certainly not a joyful meeting for Chancellor Friedrich Merz: On Wednesday (May 27), the chancellor and several ministers from his cabinet met with the five economics professors who make up the German Council of Economic Experts — an independent advisory body to the federal government.

The Council's latest report provides no cause for the German government to celebrate. On the contrary, it underscores just how poor the state of the German economy is.

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