The German Economic Institute warns that Germany could suffer economic losses of up to $46 billion due to rising oil prices linked to the escalating war in the Middle East.
The German Economic Institute (IW) released a report indicating that Germany's economy could incur losses of around 40 billion euros (approximately $46 billion) over the next two years due to rising oil prices driven by the escalating war in the Middle East. The report highlights that should the price of Brent crude reach $100 per barrel, it could decrease Germany's GDP by about 0.3% in 2026 and 0.6% in 2027, amounting to a significant economic contraction totaling 40 billion euros in two years.
Furthermore, if oil prices surge to $150 per barrel, the institute predicts that this would result in a decline in Germany's GDP by 0.5% in 2026 and 1.3% in 2027, potentially leading to losses exceeding 80 billion euros. Although actual trade with Iran has diminished in recent years, the IW emphasizes that Germany remains vulnerable to the repercussions of rising energy prices and imports, further exacerbated by the ongoing conflict in the Middle East.
The situation raises serious concerns about the future economic growth and development of Germany, as the ongoing war presents
