Germany, Europe’s biggest economy, raised its growth forecast, a rare bright spot as regional economic worries abound.
Berlin anticipates GDP will expand by 1.3% this year and a similar rate in 2027 — lackluster by global standards, but nonetheless significantly up from previous estimates, with the Iran war taking less of a toll than expected.
Elsewhere in the EU, the news was less upbeat: France’s 10-year bond yields climbed to highs not seen in decades, raising worries that Paris “may have crossed the line from too big to fail to too big to save,” the Nobel Prize-winning economist Paul Krugman wrote.
Political uncertainty pushed the euro toward its fifth weekly fall, capping a dismal run for European financial markets.