have corrected The economy, your economic forecast and go out this year, a growth of 1.6 percent. The German Council of economic experts said in its report to the Federal government. So far, the economy had expected for 2018, with an increase of 2.3 percent. In 2019 the economy will be growth of only 1.5% (originally 1.8 percent). The New Berlin-based editorial company, and the Frankfurter Allgemeine newspaper had first reported about it.
As reasons for the downturn a shortage of skilled workers, such as construction or IT Experts. In the third quarter of massive problems in the car industry have also with the new Exhaust WLTP test procedure slowed down the growth. In addition, worldwide there are risks due to trade conflicts between the United States and China, as well as the USA and the EU. Lower global growth also applies to the export nation of Germany. Uncertainty also exists in relation to the UK, because of the exit of the country from the EU is unclear.
measures to counter the downturn, among other things, a complete abolition of the solidarity of the economy, according to the contract, and in view of the high real estate prices in many cities, a Reform of the land and property acquisition tax as well as a strengthening of the housing benefits and social housing. What is needed is a Counter of the EU against protectionist tendencies is also. The strategy should also include retaliation within the rules of the world trade organization (WTO) and the conclusion of new free trade agreements. If the Brexit could not be prevented, should be sought in a follow-up agreement to minimize the damage for both sides, recommend to the business ways.
The Federal government had reduced its forecasts in mid-October. It expects in the current year and the year 2019 with growth in the gross domestic product of 1.8 per cent. Federal Minister Peter Altmaier (CDU) has highlighted that the German economy will go in the coming year in their tenth year of Growth. The upswing to come increasingly to the citizens: wages rose, and unemployment is sinking.
The five members of the Council of experts are appointed, on a proposal from the Federal government for five years. Your annual report recommendations lists. These are for the Federal government, but not binding.
