Germany's economy ministry cut its growth forecasts for 2026 and 2027 and raised its inflation projections on Wednesday, as the Iran war drives up oil and gas prices. The government now expects 0.5% growth for 2026, down from an earlier projection of 1.0%, and cut its 2027 growth outlook to 0.9% from 1.3%, confirming a Reuters report last Thursday. "The German economy is on a modest recovery path, but the headwinds have intensified," Economy Minister Katherina Reiche said.