German Central Bank Reports Slight Economic Growth Amid Conflicts

The German Central Bank (Bundesbank) reported that the German economy experienced modest growth in the second quarter of 2026 despite the challenges posed by the Iran war. It is expected that the gross domestic product (GDP) increased by 0.1% compared to the previous quarter. The report indicated that exporters benefited from the effects of supply chain bottlenecks in intermediate goods, which affected international competitors. German consumers were not significantly impacted by the rise in energy prices, as their spending remained stable. However, it is anticipated that the inflation rate will rise slightly again in the coming months after declining to 2.3% in June.

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