Bahattin Gonultas
13 April 2026•Update: 13 April 2026
Germany’s economy lost momentum in the first quarter as the Middle East conflict weighed on activity, the Economy and Energy Ministry said Monday.
In a report, the ministry said an initial partial recovery at the start of the year has given way to stagnation and uncertainty.
It cited rising prices, weak demand, supply bottlenecks, higher energy and raw material costs, and persistent uncertainty as factors behind declines in industrial and consumer indicators.
The ministry said any recovery will depend on a resolution of the crisis, but warned that high prices are likely to persist even if a ceasefire holds.
Businesses are facing pressure from supply chain disruptions and surging input costs, the report said.
Analysts added that weak industrial activity and adverse weather in the construction sector significantly limited growth in the first quarter.
*Writing by Emir Yildirim in Istanbul