- Title: Top institutes slash growth forecasts for German economy
- Date: 2nd October 2019
- Summary: BERLIN, GERMANY (OCTOBER 2, 2019) (REUTERS) GERMAN ECONOMY MINISTER PETER ALTMAIER WALKING ON TO STAGE ALTMAIER TALKING PHOTOGRAPHER TAKING PHOTO (SOUNDBITE) (German) GERMAN ECONOMY MINISTER PETER ALTMAIER, SAYING: "It's important to stress that the outlook is subdued - it's regrettable but that's the way it is due to the effects of international trade conflicts and the unresolved issue of Brexit. On the other hand it's also right that we're not experiencing an economic crisis at the moment and there is no risk of an economic crisis either." VARIOUS OF JOURNALISTS TAKING NOTES CAMERAMAN FILMING / ALTMAIER TALKING (SOUNDBITE) (German) GERMAN ECONOMY MINISTER PETER ALTMAIER, SAYING: "Important economic impetus is still coming from the domestic economy and of course from the public sector. The development on the labour market remains pleasing - employment growth has continued to increase so far. Real incomes continue to increase but we're seeing that especially in manufacturing industry, in export-oriented industry, growth hasn't just come to a standstill - rather sales have declined." ALTMAIER TALKING (SOUNDBITE) (German) GERMAN ECONOMY MINISTER PETER ALTMAIER, SAYING: "I'm sticking to my view that it would be the wrong time to discuss (dropping) our balanced budget policy and that we should focus on what we can do." CAMERAS FILMING ALTMAIER
- Embargoed: 16th October 2019 12:08
- Keywords: German economy German Economy Minister Peter Altmaier growth forecast
- Location: BERLIN, HAMBURG, GERMANY, UNKNOWN LOCATIONS
- City: BERLIN, HAMBURG, GERMANY, UNKNOWN LOCATIONS
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA001AZEKSR1
- Aspect Ratio: 16:9
- Story Text:Germany's leading economic institutes on Wednesday slashed their growth forecasts for Europe's biggest economy for this year and next, blaming weaker global demand for manufacturing goods and increased business uncertainty linked to trade disputes.
The institutes said they expect the German economy to grow by 0.5% this year and 1.1% in 2020. That compared with their April estimates of 0.8% and 1.8% respectively. For 2021, the institutes predict a mild recovery with economic expansion of 1.4%.
The revisions, which feed into the government's own forecasts, reflect growing fears that a slowdown in Germany, driven by a recession in the export-dependent manufacturing sector, could hamper the broader euro zone economy.
Economy Minister Peter Altmaier said the outlook was subdued due to international trade conflicts and the unresolved issue of Brexit but added that Germany was not experiencing an economic crisis and the government therefore did not need to abandon its policy of avoiding new debt.
Claus Michelsen, an economist at Berlin's DIW institute, said the institutes did not see any need for a comprehensive economic stimulus programme. But he said it would be wrong for Chancellor Angela Merkel's coalition government to stick to its policy of avoiding new debt at a time of economic downturn.
The government is due to publish its own growth forecasts on Oct. 17.
(Production: Leon Malherbe, Olli Barth, Tanya Wood, Michelle Martin)
- Copyright Holder: REUTERS
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