Start Germany Economic forecasts for Germany significantly reduced

Economic forecasts for Germany significantly reduced

253
0
TeroVesalainen / Pixabay

Because of the „Brexit“ and the international trade conflicts, the economies look more pessimistic on the economy. The German gross domestic product will grow this year by 1.6 percent and in 2019 only by 1.5 percent, said the German Council of Economic Experts today in its report for the German Federal Government. So far, the five economists had estimated an increase of 2.3 and 1.8 percent.

„The German economy is in one of the longest upswing phases of the postwar period.“ Risks, however, are the tariff dispute, a disorderly EU exit from the UK or a resurgence of the euro crisis. „Due to trade conflicts, production problems in the automotive industry and increasing capacity bottlenecks, a slowdown in growth is to be expected,“ said the economist Isabel Schnabel.

With their lowered prognosis, the five economists are now even more pessimistic than the German government, which forecasts 1.8 percent for both years. The German Council of Economic Experts was established in 1963 to advise policy makers.