A Volkswagen electric car assembly line in Dresden, Germany. Higher fuel costs have hit the country's crucial manufacturing base hard

A Volkswagen electric car assembly line in Dresden, Germany. Higher fuel costs have hit the country's crucial manufacturing base hard

 JENS SCHLUETER

The German government on Wednesday is expected to cut its growth forecast for this year as the energy shock triggered by the Middle East war hammers Europe's biggest economy.

Hopes had been high that the eurozone's traditional growth engine would sputter back to life in 2026 after a long decline, driven by Chancellor Friedrich Merz's public spending blitz.

Originally published on doc.afp.com, part of the BLOX Digital Content Exchange.

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