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Germany's growth outlook slashed once again by the EU Commission

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  • Economy
  • 6 months ago
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The EU has slashed its growth forecast of Germany’s economy for the second time this year, mainly due to the ongoing trade wars and China’s own slowdown.

Germany is only expected to grow at a rate of 0.5% this year, according to the latest forecastby the European Commission, taking to second place behind Italy as the worst economy in the Eurozone.

The Commission had previously lowered its expectation of growth for Germany from 1.8% to 1.1% in February and data released only last month pointed to a drop in both imports and exports by a larger figure than what analysts expected.

Nevertheless, the European Commission has an upbeat feeling about the second half of the year.

“After a sharp slowdown in the second half of 2018 and early 2019, economic growth is expected to recover somewhat on the back of resilient domestic demand, the dissipation of temporary production bottlenecks and a gradual improvement in foreign demand.”

“The current account surplus remains high, although declining, and the fiscal stance is expected to be moderately expansionary over the forecast period.”

 

 

 

Source: Smart Trend Team