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
Germany Unlikely to Enter Recession Despite Oil Shock, Says Bundesbank Chief
Bundesbank President Comments on Economic Outlook Amid Oil Price Shock
By Christian Kraemer
Impact of Oil Price Shock on German Economy
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.
Recession Risks and Economic Resilience
"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.
Growth Prospects and Challenges
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.
Government Forecasts and Inflation Projections
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)
