The German government slightly lowered its growth forecast on Wednesday to 1.7 percent for this year, blaming an economic slowdown in China and other emerging markets, but it confirmed its prediction of a 1.8-percent expansion next year.
In April, the government had forecast growth of 1.8 percent for Europe’s largest economy for this year.
“The German economy is continuing to grow. It remains on track despite the subdued outlook for the global economy with weaker growth in China and commodity-rich emerging markets,” Economy Minister Sigmar Gabriel said.
The Economy Ministry estimated exports would surge by 5.4 percent this year and by 4.2 percent next year while imports would increase by 5.9 percent and 5.3 percent respectively.
That means foreign trade will only make a small contribution to growth this year. Private consumption will probably be the only pillar of support next year, the ministry said.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Craig Erlam
Latest posts by Craig Erlam (see all)
- European open – trade war, gold, oil - 08/19/2019
- OANDA Market Insights – episode 78 (podcast) - 08/16/2019
- US open – Trade war, yield curve, gold, oil - 08/16/2019