German Economy Minister Reiche says growth will be very small and prices will go up because of the war in the Persian Gulf.

Apr 24, 2026, 10:08

Introduction

The German Economy Minister, Katherina Reiche, said the war in the Persian Gulf will slow the economy. She said the country''s growth will be only 0.5% this year. She also said prices will go up by 2.8%. The reason is higher costs for energy and food.

Main Body

The minister said the war got worse. This stopped the small recovery in the economy. Before the war, the economy was not growing for three years. The government made two plans. One plan is for a long war. In this plan, the Strait of Hormuz stays closed. The other plan is for a short war. In this plan, ships can travel again. The minister said it is not possible to know which plan will happen. Prices will go up because of higher costs for gasoline, oil, gas, and electricity. Food prices will also go up. The minister said this is a big problem from outside. It hurts families and businesses. The country needs to change its economy to help companies. The long-term growth is only 0.5%. This is not enough. Companies are cutting jobs and moving to other countries. Germany is losing to other countries in Europe and the world. The European Commission says Germany has the slowest growth in Europe. The economy minister and the finance minister do not agree. The economy minister does not want the government to control fuel prices or cut energy taxes. She says the money for these things must come from somewhere. She also does not want a special tax on oil company profits. She says this could make refineries leave Germany. The European Commission also does not like the idea of a tax on big profits. A similar tax from the Russia-Ukraine war gave Germany 2.5 billion euros. But this tax is still in court. Many economic research institutes agree with the minister''s growth forecast. One expert said the small growth comes from government spending. This spending uses borrowed money. This can cause problems for public money in the future. The government will have to pay more interest. This means less money for social services and pensions. Surveys show that many German companies feel bad effects from the war in the Middle East. Another survey of 400 international companies found that high energy costs, too much paperwork, and slow digital changes stop them from investing in Germany.

Conclusion

Germany''s economy this year has two big problems. First, the war in the Persian Gulf makes energy prices high. Second, the country has old problems in its economy. The two ministers do not agree on what to do. The European Commission is also careful. It is hard to find a good answer.

Vocabulary Learning

costs
The money you need to buy or do something.成本
Example:Higher costs for gasoline make prices go up.
cut
To reduce or make something smaller.削減
Example:Companies are cutting jobs because of the war.
growth
When something becomes bigger or more.增長
Example:The growth of the economy is very small this year.
prices
The amount of money you pay for something.價格
Example:Prices of food and energy are going up.
slow
To make something move or happen less fast.減慢
Example:The war will slow the economy.

Sentence Learning

The German Economy Minister, Katherina Reiche, said the war in the Persian Gulf will slow the economy.
This is a simple sentence with a main clause and a noun clause as the object.本句为简单句，包含主句以及作为宾语的从句。主语是“The German Economy Minister, Katherina Reiche”，谓语是“said”，宾语是“the war in the Persian Gulf will slow the economy”这一从句。
She said the country's growth will be only 0.5% this year.
This is a simple sentence with a main clause and a noun clause as the object.本句为简单句，包含主句以及作为宾语的从句。主语是“She”，谓语是“said”，宾语是“the country's growth will be only 0.5% this year”这一从句。
Prices will go up because of higher costs for energy and food.
This is a simple sentence with a prepositional phrase explaining the reason.本句为简单句，包含一个介词短语说明原因。主语是“Prices”，谓语是“will go up”，介词短语“because of higher costs for energy and food”表示原因。
The minister said it is not possible to know which plan will happen.
This is a complex sentence with a noun clause as the object and an infinitive phrase.本句为复合句，包含一个宾语从句以及不定式短语。主语是“The minister”，谓语是“said”，宾语从句是“it is not possible to know which plan will happen”，其中“to know which plan will happen”是不定式短语。
Companies are cutting jobs and moving to other countries.
This is a simple sentence with two verbs connected by 'and'.本句为简单句，包含两个由“and”连接的谓语动词。主语是“Companies”，谓语是“are cutting jobs”以及“moving to other countries”。