Economy Cools Further – Industry in Recession
Germany’s leading economics research institutes have revised their economic forecast for Germany significantly downward. Whereas in the spring they still expected gross domestic product to grow by 0.8 percent in 2019, they now expect GDP growth to be only 0.5 percent. Reasons for the poor performance are the falling worldwide demand for capital goods – in the exporting of which the Germany economy is specialized – as well as political uncertainty and structural changes in the automotive industry. By contrast, monetary policy is shoring up macroeconomic expansion. For the coming year, the economic researchers have also reduced their forecast of GDP growth to 1.1 percent, having predicted 1.8 percent in the spring.
Press information (in German)