The Bundesbank (Buba) estimated in its weekly report published on Thursday that the spike in energy prices linked to the conflict in the Middle East would lead to higher inflation in the upcoming months. The bank projected that, after a brief recovery, Germany's economy would shrink again due to the crisis, with a sharper decline stopped by expansionary fiscal policy. It will also further burden businesses due to the supply chain issues and weaker demand. The Buba predicted that the country's calendar-adjusted gross domestic product (GDP) would grow by 0.5% in 2026, 0.8% in 2027, and 1.4%. Furthermore, the bank ... (full story)