Germany news: Economic slowdown expected in 2nd quarter

What you need to know

• Germany's government is predicting a clear economic slowdown in the second quarter
• Rising energy prices have led to lower production and job losses in Germany's energy-intensive industries
• Reports of a dead whale off Denmark have sparked questions about the fate of a humpback that spent weeks stuck off Germany's Baltic Sea coast 

Below is a roundup of news headlines from Germany on Friday, May 15, 2026:  

Dead whale found off Denmark, minister warns against speculation

Following reports of a dead whale off the Danish island of Anholt, the environment minister of the German state of Mecklenburg-Western Pomerania says it's unclear if it is the same mammal that spent weeks languishing off Germany's northern coast.

"As soon as we have confirmed information on the matter, we will inform the public immediately," State Environment Minister Till Backhaus said Friday.

Danish media reported late Thursday that a suspected humpback whale carcass had been spotted about 75 meters (245 feet) from Anholt's shore. 

The reports said authorities had no plans to recover the whale.

In late March, a humpback whale — dubbed Timmy by the German press — became stranded off Germany's Baltic Sea coast. The marine mammal spent weeks stuck in Wismar Bay, where its health deteriorated.

A rescue effort led to the animal being moved into the Skagerrak strait in the North Sea and released in early May.

Backhaus cautioned against speculation and said the goal was now "to determine whether the dead whale is the same animal that had previously stranded multiple times in Wismar Bay."

He said he was in close contact with the Federal Environment Ministry and the Danish Environmental Protection Agency.

"However, due to Anholt’s transportation situation, we do not expect quick results," Backhaus added.

German economy to take big hit from Iran war in 2nd quarter

The German government says it expects the economy to suffer a significant slowdown in the second quarter as a result of the Iran war. 

The prediction comes less than a month after the government halved its economic growth forecast to 0.5% for the whole year.

"Rising prices, supply ⁠chain ​issues ​and uncertainty are weighing ​on sentiment ‌among businesses and ​households," ⁠the Ministry for Economic Affairs said in its ⁠monthly ​report.

It said further economic development will depend on how long the conflict in the Middle East lasts and how long trade routes and production capacities remain impaired.

"But even after the situation eases, the consequences for energy and raw materials prices and supply chains are likely to remain noticeable for longer," it said.

Europe's largest economy had a stronger-than-expected start to the year, with GDP growing 0.3% in the first quarter compared with the previous quarter.

Rising prices also weigh heavily on industries

High energy costs have also caused Germany's energy-intensive industries to scale back production and cut tens of thousands of jobs, according to the Federal Statistical Office.

Since February 2022, production fell by 15.2% in the chemicals, paper, glass, and metal manufacturing sectors. The number of workers dropped by 53,300, or 6.3%.

The decline in production was most pronounced among manufacturers of concrete, cement, and sand-lime brick products, the statistics office said.

One exception was petroleum processing: it increased its production by 24.6% and created 1,000 new jobs. 

Will the Iran war cause a global recession?

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Sentiment drops in residential construction sector

Meanwhile, sentiment in Germany's housing construction sector dropped in April to its lowest level in four years.

The Munich-based Ifo Institute's business climate index for the sector plummeted from minus 19.3 points in March to minus 28.4 points last month. 

"Geopolitical uncertainty is ‌now also weighing on residential ‌construction ​in Germany," the Ifo's Klaus Wohlrabe said. "With fragile supply chains ​and rising financing costs, several risks are hitting the construction sector ⁠simultaneously."

German economy under pressure

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Welcome to our coverage

Guten Tag from the DW newsroom in Bonn.

The German government is warning that the impacts of the Iran war will likely cause a significant economic slowdown in the second quarter.

The Ministry for Economic Affairs said the conflict is driving up prices for energy and raw materials, creating uncertainty for businesses and households.

The rising prices are also causing mass layoffs and a decline in production in Germany's energy-intensive industrial sectors, according to new figures from the Federal Statistical Office.

And a survey by the Munich-based Ifo Institute has found that sentiment in German housing construction has plummeted to its lowest level in four years.

Meanwhile, reports of a dead whale off the coast of Denmark have led to questions about the fate of a humpback — dubbed Timmy — that spent weeks languishing off Germany's Baltic coast. 

Stick with us for these and other stories from across Germany.