German Economic Council Cuts Growth Forecast Amid Spike in Energy Prices

The Reichstag Building, which houses Germany’s lower house of parliament (Bundestag), is reflected in a puddle after a downpour in Berlin on Aug. 4, 2025. John Macdougall/AFP via Getty ImagesThe German Council of Economic Experts cut its growth forecast for the country’s economy on May 27, highlighting the impact of the ongoing war in Iran, higher energy prices, and large welfare costs.The group, known as the “Five Sages” in Germany, said they now expect just 0.5 percent growth this year, down from a November forecast of 0.9 percent, according to their spring report to the government.