The Federal Government has adjusted its economic forecast for 2020 for significantly below, mainly because of weaker world trade. Gross domestic product is now expected to grow by 1.0 percent, said Minister of Economics Peter Altmaier (CDU). In April, the government had predicted a plus of 1.5 percent. But there is no threat of a financial crisis, said Altmaier.
For the current year, the forecast remains unchanged: The government and the leading economic research institutes expect growth of 0.5 percent. By 2018, gross domestic product had risen by 1.4 percent.
Above all, the export-strong German industry is currently burdened by international trade conflicts and ambiguity about the Brexit. This creates uncertainty and slows down investment. German key industries such as automotive and mechanical engineering as well as the electrical and chemical industries have long since felt this.
Domestic demand is still intact, Altmaier said. "Employment and incomes are rising and the construction sector is still booming."
