German economy to slow next year: IW institute

Germany’s economy will grow less next year than in 2015 due to fading optimism in emerging economies and uncertainty about the consequences of the influx of migrants to Europe’s largest economy, according to a survey from a leading German institute published Monday.

The growing uncertainty has prompted many companies to scale back their growth expectations, business-funded IW economic institute said.

“The series of years with modest growth years will continue,” said IW director Michael Huether. “This is due to slowing export growth in an global economy marked by institutional uncertainties and restructuring.”

The institute forecast growth of around 1.5% for next year, which is roughly in line with recent forecasts by other institutes but more pessimistic than the 1.8% forecast by the German government. For this year, IW estimates growth of 1.75%.

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