reduced The Organisation for economic co-operation and development (OECD) has its growth forecast for the German economy significantly. For 2019, the OECD expects only a growth of 0.7 percent. So far, it was assumed to be 1.6 percent. The Federal government expects a growth of 1.0 percent.
In the coming year, the gross domestic product is expected to rise according to the OECD, by 1.1 percent, after previously 1.4 percent had been forecast. The main reason for the slower growth, the weaker global economic conditions, Germany is particularly dependent. A stronger slowdown in China would pollute the global growth and could weaken growth in Europe.
For Italy, the organization predicted a recession year. The gross domestic product to shrink in 2019, by 0.2 percent, in 2020, a slight increase of 0.5 percent. For France, the OECD predicted in both years, 1.3 percent. “In Europe, considerable political uncertainty, including the Brexit persist,” it said. A disorderly exit would economies the costs for the European people.
Significantly, the forecast for the UK, which wants to leave this month from the EU. For the current year, the organization revised its growth forecast from 1.4 to 0.8 per cent by 2020 from 1.1 to 0.9 percent.
the Positive Outlook for the U.S.
For the US, the experts expect a growth rate of 2.6 per cent, to be followed by 2020, an increase of 2.2 percent. “A solid labour market outcomes and favorable financial conditions continue to support the income and expenditure of households,” said the OECD. Higher tariffs were business costs and prices, however, are on the rise. The growth of investments and exports have slowed down already.
For China, the experts are forecasting a gradual slowdown. 2020, the growth will be six percent. Reason for the trade dispute with the United States.
