Berlin, April 20, 2026 The Federation of German Industries (BDI) has abandoned its earlier forecast of industrial growth for 2026, citing heightened economic uncertainty due to the ongoing conflict in Iran.
Economic Outlook Dims
The BDI, Germany’s leading industry association, no longer expects any growth in industrial production this year, reversing its January projection of a 1% increase. This marks the latest setback for Germany’s industrial sector, which has seen production decline annually since 2022.
The association attributes the downward revision to the geopolitical instability caused by the Iran war, which has introduced new risks for global supply chains and business operations. BDI President Peter Leibinger emphasized the challenges facing German companies, stating: *"Die Krise im Iran schaffe zusätzliche Unsicherheit und belaste Unternehmen."* (The crisis in Iran creates additional uncertainty and burdens companies.)
Sector-Wide Challenges
Germany’s industrial sector, long a cornerstone of its economy, has struggled with persistent declines in recent years. The BDI’s latest assessment underscores how external shocks, such as the Iran conflict, exacerbate existing vulnerabilities.
The war has disrupted trade routes and increased energy costs, further straining manufacturers already grappling with weak demand and structural challenges. Leibinger’s remarks reflect broader concerns within the business community about the compounding effects of geopolitical crises on economic recovery.