Published by Global Banking & Finance Review®
Posted on April 16, 2026
1 min readLast updated: April 16, 2026
Add as preferred source on GoogleBundesbank President Joachim Nagel told reporters in Washington on April 16 that while the Iran war–driven oil price shock will weigh on Germany’s economy, a recession remains unlikely given a respectable start to 2026 and strong fiscal buffers. Despite halving its growth forecasts for 2026 and 2027
By Christian Kraemer
WASHINGTON, April 16 (Reuters) - Bundesbank President Joachim Nagel said on Thursday that the oil price shock due to the Iran war will take a toll on the German economy but is unlikely to trigger a recession.
"A great deal would have to happen for us to enter a recession now," Nagel said in Washington, on a panel with Finance Minister Lars Klingbeil on the sidelines of the International Monetary Fund spring meetings.
He added that while the economy had got off to a "respectable start" this year, the war in the Middle East was acting as a brake on growth.
The German government has halved its growth forecast for 2026 and also cut its growth prediction for 2027, while raising its inflation projections, a source told Reuters on Thursday.
(Reporting by Christian Kraemer, Maria Martinez and Reinhard Becker; Editing by Kirsten Donovan)
Bundesbank President Joachim Nagel stated that a great deal would have to happen for Germany to enter a recession, despite the oil price shock due to the Iran war.
The war in the Middle East has acted as a brake on Germany's economic growth, according to Bundesbank chief Joachim Nagel.
Bundesbank President Joachim Nagel and Finance Minister Lars Klingbeil addressed Germany’s economic outlook at the IMF spring meetings in Washington.
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