Start Europe Government halves growth forecast

Government halves growth forecast

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The Federal Government has lowered its growth forecast for 2019 to only 0.5 percent. In the coming year, the gross domestic product (GDP) will increase by 1.5 percent, said Economy Minister Peter Altmaier in Berlin.

„Will overcome the weak phase“

„The economic development in Germany has cooled since the middle of last year,“ said CDU politician Altmaier. „The good news is – we will overcome this phase of weakness in the future.“

However, important buoyant forces in Germany are „intact,“ said Altmaier with reference to the positive development in the labor market. „This is the basis for a dynamic consumer demand.“ In addition, the construction industry is booming and it can be expected that „the global economy will regain momentum“.

Companies are reluctant to invest

The previous and already lowered estimate was 1.0 percent. Trade disputes and the uncertainty surrounding Brexit, for example, are putting a strain on many companies in Europe who are reluctant to invest.