German economy shows slight growth despite global conflicts

Germany's economy has demonstrated modest growth in the second quarter of 2026, despite challenges posed by global conflicts, particularly the war in the Middle East. The Bundesbank reported that the economy likely expanded by 0.1% quarter-on-quarter, indicating resilience in the face of external pressures. This growth is attributed to the robustness of Germany's industrial sector and sustained consumer spending, which have helped offset the adverse effects of increased energy and commodity prices resulting from the conflict. However, the Bundesbank also noted that the war has led to higher energy costs, which have dampened the overall economic recovery. Economists had previously anticipated a 0.1% rise in economic output for the quarter, reflecting the cautious outlook due to ongoing global uncertainties. The modest growth suggests that while Germany is navigating through external challenges, the path to a more robust economic recovery remains complex and uncertain.