Key insights
- German Finance Minister acknowledges the economic impact of the Iran conflict on Germany, leading to downward revisions in growth forecasts by the IMF. Slower German growth could modestly dampen global demand and indirectly weigh on US equities, particularly those with significant European exposure. The conflict introduces geopolitical uncertainty, a risk-off sentiment driver.
By Christian Kraemer
BERLIN, April 15 (Reuters) - Although Germany is not involved in the Iran war, the country is feeling its economic impact directly, German Finance Minister Lars Klingbeil said on Wednesday.
Asked about the government’s forecasts which will be presented next week, Klingbeil said they are in preparation and he could not comment on it.
"But what we can already see now is that this war is also harming us in Germany in terms of economic growth," he said in Washington on the sidelines of the International Monetary Fund spring meetings.
The IMF cut Germany’s growth forecasts for this year and next on Tuesday, projecting growth rates of 0.8% in 2026 and 1.2% in 2027, down 0.3 percentage points from its previous forecasts for both years.