'Best times over' for Germany: government slashes growth forecast

The German government cut its forecast for 2019 economic growth for the second time in three months on Wednesday, reflecting a worsening slowdown driven by a recession in manufacturing. German exporters are struggling with weaker demand from abroad, trade tensions triggered by U.S. President Donald Trump’s “America First” policies and business uncertainty caused by Britain’s planned departure from the European Union. The difficult trade environment means that Germany’s vibrant domestic demand, helped by record-high employment, inflation-busting pay increases and low borrowing costs, is expected to be the main driver of growth this year and next. The government now expects gross domestic product to grow 0.5 percent this year, Economy Minister Peter Altmaier told reporters as he presented the spring forecast. For 2020, the government now envisages a consumption-driven rebound with economic expansion of 1.5 percent.

Spotlight

Spotlight

Related News