German Central Bank notes modest economic growth amid Iran conflict

A report from the German Central Bank revealed that Germany's economy experienced a slight growth in the second quarter of 2026, despite challenges stemming from the Iran war. According to estimates, the gross domestic product (GDP) is expected to increase by 0.1% compared to the previous quarter, with German exporters benefiting from the impact of international competitors affected by supply chain shortages. The report also noted that German consumers were not significantly affected by rising energy prices and continued to maintain their spending levels, even though inflation is expected to rise again in the coming months after declining to 2.3% in June.

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