Bundesbank reports German Q1 modest growth driven by strong industrial and services output despite three years of stagnation.
Higher energy prices and uncertainty from the Iran war are expected to weigh on the economy, dampening private consumption and export outlook.
The Bundesbank forecasts only slight expansion in Q2, with expansionary fiscal policy providing limited positive impulse amid rising market‑based interest rates.
Supply‑chain disruptions and weaker global demand due to the Middle‑East conflict further constrain business expectations and export performance.