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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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.