The Iran war is having a negative impact on the economic recovery in Germany. This emerges from the economic forecast of the Munich Ifo Institute. The longer the war lasts, the more severe the effects become. Economic researchers also expect inflation to rise, at least temporarily.

However, according to economists, the economic recovery would not come to a complete standstill even if the war lasted longer than expected. Despite the significant increase in energy prices, “the recovery in Germany is likely to continue over the course of this year,” said Timo Wollmershäuser from the Ifo Institute. The reason for this is the additional spending on infrastructure, climate neutrality and defense decided by the federal government and Bundestag, which has a positive effect on demand.

This article will continue to be updated.