PNN – The German Institute for Economic Research (DIW) lowered its economic growth forecast for the country due to the terrorist war against Iran.
According to the report of Pakistan News Network, citing the Handelsblatt newspaper, the German Institute for Economic Research (DIW) has significantly reduced its economic growth forecast for the country.
The Berlin-based economists now expect GDP growth to be just 0.5 percent this year, down from a previous forecast of 1 percent.
The experts at the German think tank have also cut their growth forecast for next year to 0.8 percent, citing ongoing conflicts in the Middle East and the imposed terrorist war against Iran.
The permanent reopening of the vital Strait of Hormuz, through which a fifth of the world’s oil exports pass, remains out of reach, according to economists at the security agency.
Energy prices have yet to fall as much as expected after the shock of the war. Economists had been more optimistic in their previous forecasts.
Geraldine Denis-Kendlik, head of economic forecasting at DIW (German Institute for Economic Research), said: This shock will reduce growth and raise prices at the same time. He and his team expect inflation to reach 2.9 percent this year and 3 percent next year.