German exports up, production falls short of forecasts
New manufacturing orders fell 3.8% and analysts said the modest gain does not signal a rebound as energy costs and tariffs weigh on industry.
- Data released Tuesday from Destatis, the federal statistics office, showed German industrial production rose 0.4% in April. This marks the first monthly increase since the Middle East conflict began in late February.
- Mounting energy costs stemming from the Iran war continue to weigh on the economy. Inflation climbed to 2.9% year-on-year in April, driven largely by energy product prices which were over 10% higher than a year earlier.
- New manufacturing orders fell 3.8% in April, despite exports rising 0.9% to 137 billion euros. The struggling automotive sector suffered a sharp decline of almost five percent.
- The German government recently halved its 2026 growth forecast to 0.5%. German Institute for Economic Research chief economist Geraldine Dany-Knedlik warned that the energy price shock is "clearly slowing the recovery."
- Structural challenges and potential interest-rate hikes from the European Central Bank expected this Thursday suggest output may decline in coming months. These factors continue to limit the nation's growth potential.
48 Articles
48 Articles
The DIW economists have revised their conjugation forecast downwards: in spring and summer, they now expect a recession in Germany. It is important that the funds of the special assets are used wisely.
Prices are rising, jobs are in danger: the DIW sees grim times coming for the German economy. The tank discount is the wrong way to relieve consumers.
Germany news: Recession looms as Iran war chokes growth
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.
The German Institute for Economic Research must correct its initial assessment, as it stands for the German economy.
The DIW has adjusted its forecast for economic development significantly downwards in the current year. Economists currently see Germany in recession. A recovery is to be expected primarily through state investments.
Coverage Details
Bias Distribution
- 57% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
