Germany warns of more economic trouble, blames U.S.

Yesterday, Germany’s Economics Ministry cut its growth forecast for 2026 in half to 0.5 percent, and for 2027 from 1.3 percent to 0.9 percent. It said that “economic developments in Germany will depend crucially on a resolution of the conflict in the Middle East.” These forecasts highlight the current vulnerability of Germany’s economy to global shocks: Ultimately, an economic crisis will cause Germany and Europe to strengthen and unify against the United States.