German Economy Faces Slowdown Due to West Asian Tensions

The German government has warned that the country's economic growth will slow sharply in the second quarter due to rising energy costs, supply chain disruptions, and declining consumer and business confidence amid rising tensions in West Asia. The Federal Ministry for Economic Affairs and Energy stated that geopolitical tensions in West Asia will largely determine Germany's future economic situation, with impacts on energy and raw material prices and supply chains likely to persist. Inflation rose to 2.9 percent in April, and industrial production has been declining for four consecutive quarters.