OMM Redaksiyası
Germany’s economy is likely to lose momentum temporarily in the third quarter of 2026 because of low water levels on the Rhine and elevated energy prices, the Bundesbank said in its September report.
After recording strong growth in the previous two quarters, real gross domestic product is expected to expand only slightly in the current quarter, according to the German central bank.
Rhine disruption weighs on industry
Temporary factors, particularly reduced water levels on the Rhine, affected industrial activity in July. Industrial production and sales fell sharply as impaired river transport increased costs, the Bundesbank said.
The removal of a fuel rebate also had a significant impact on the retail sector at the beginning of the quarter. Meanwhile, high energy prices reduced consumers’ purchasing power and limited spending on other goods.
Growth expected to recover
Despite the pressures, the Bundesbank said the German economy remained relatively resilient to supply-chain disruptions and higher energy costs.
Economic growth is expected to accelerate again in the fourth quarter, depending on developments in the Middle East and the restoration of normal water levels on the Rhine.
Energy commodity prices rose sharply in August and September after renewed tensions in the Middle East followed the stalling of a memorandum of understanding between the United States and Iran.
