German think tank cuts economic forecast, Middle East conflict may halve this year's growth to 0.6%

```htmlGolden Ten Data reported on April 1 that according to Germany's IFO think tank's semi-annual forecast released on Wednesday, the country's economic growth this year will be less than half of what was expected a few months ago due to the impact of the Middle Eastern conflict. The research institution stated that this year's GDP will grow by 0.6%, a significant downward revision from the 1.3% forecast in September last year, as accelerated inflation has suppressed private consumption. They predict that GDP will grow by 0.9% in 2027. Meanwhile, the institution forecasts that the consumer price index may rise by 2.8% this year and 2.9% next year. Forecast director Timo Wollmershaeuser said: "The energy price shock triggered by the Iran war is severely impacting economic recovery. However, at the same time, expansionary fiscal policy is supporting the domestic economy and preventing a further sharp decline." As the blockade of the Strait of Hormuz shakes global oil and gas markets and disrupts supply chains, hopes for a spending-driven rebound in Europe's largest economy are becoming increasingly dim. As a result, Germany's inflation rate in March jumped to its highest level in more than a year, and sentiment indicators continue to deteriorate.```