The cut point of five economic growth forecast for the current year. The Advisory Council on the assessment of the overall economic development is expected for 2019, a growth of the gross domestic product (GDP) by 0.8 percent. In November, the scientists were anticipating an increase of 1.5 percent.
“The boom of the German economy is over for now,” said the Chairman of the Council of economic experts, Christoph Schmidt. The pace of expansion had slowed “considerably”.
Responsible for the temporary production problems in the automotive and chemical industry. At the same time have slowed, the underlying momentum of the German economy: export demand from major sales markets was significantly weaker, in many industries, capacity will be reached limits. Also, bottlenecks in the labour force played a role.
“A recession is not expected in view of the robust domestic economy currently,” said Schmidt. The number of employed is expected to rise in the Council of experts, according to more, the wage dynamics will remain high. Private consumption, construction investment, and the state of positive growth is expected contributions.
For the year 2020, scientists expect a much stronger growth of 1.7 per cent. However, they warned of great risks: in addition to the uncertain outcome of the Brexit negotiations contribute to this end, and in particular the unresolved trade conflicts between the United States, Europe, and China, as well as the risk of a better than expected growth slowdown in China. “A spiral of protectionist measures” would therefore have the potential to allow the German economy to slide into recession.
The German economy grew last year by 1.4 percent. In 2017, the GDP had risen by 2.2 percent.
