Jordan Daily - Germany's economy could suffer losses of up to 40 billion euros ($46.4 billion) over the next two years due to rising oil prices fueled by the ongoing conflict in the Middle East, according to a new report.
The German Economic Institute (IW) warned that a surge in Brent crude oil prices to $100 per barrel could shave approximately 0.3% off Germany's gross domestic product (GDP) in 2026 and 0.6% in 2027.
This reduction in economic output would translate to a loss of roughly 40 billion euros over the two-year period, the institute stated.
The IW further cautioned that if oil prices were to escalate to $150 per barrel, the impact on Germany's GDP could be even more severe, potentially decreasing by 0.5% and 1.3% in 2026 and 2027, respectively.
This scenario would result in losses exceeding 80 billion euros, placing a significant strain on the German economy.
Despite a decline in direct trade with Iran in recent years, the institute emphasizes that Germany remains vulnerable to the repercussions of heightened energy prices and import costs. The ongoing instability in the Middle East poses "serious consequences" for the country's economic growth and future development, the IW concluded.
