07:00 AM EDT, 07/30/2026 (MT Newswires) -- The German economy is projected to sustain its recovery trajectory in the second half, even as renewed geopolitical uncertainties continue to pose upside risks to energy costs and broader inflation, the ifo Institute said Thursday. Growth in the eurozone's largest economy is expected to be driven by the ongoing government stimulus and newly implemented structural reforms. According to ifo's head of forecasts, Timo Wollmershäuser, recent improvements in the business climate index point to steady sentiment, with the July survey showing "hardly any differences" in business expectations before and after the conflict in the Persian Gulf reignited earlier in July.

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