German industrial production declined for the second month in a row

In March 2026, industrial production in Germany declined for the second month in a row due to the effects of the conflict in the Middle East. This was reported by Bloomberg on May 8.

"In March, German industrial production unexpectedly declined for the second month in a row, which increased concerns about Europe's largest economy, which is struggling with the consequences of the Iranian war," the material says.

According to the German statistical office, output decreased by 0.7% compared to February. This trend is due to the downturn in the energy sector and mechanical engineering.

"Higher oil and natural gas prices, as well as continued uncertainty around the fighting [in the Middle East], probably had a greater impact on business in the current quarter," the publication clarifies.

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German political scientist Claudia Mayor reported on May 7 that the conflict in the Middle East has become an economic disaster for most of Europe. The expert noted that the German government has reduced the forecast of economic development by almost half.

The Wall Street Journal (WSJ) reported on April 30 that the eurozone economy slowed growth in the first quarter amid a spike in energy prices caused by the conflict in the Middle East. The eurozone's gross domestic product grew by 0.1% in the first quarter, which is lower than the projected 0.2% growth in the last three months of 2025.