The Federation of German Industries (BDI) lowered 2018 GDP growth forecast to 2.0%, down from prior estimate of 2.25%. Also, export growth is expected to be 3.5% in real terms, down from prior forecast of 5%.
BDI president Dieter Kempf urged the country to “prepare for the downturn” in a statement. He noted that “the high phase of the global economic recovery is over, investment activity has flattened.” And, for German companies “risks arise with almost every protectionist measure – even if they are directed by the US against China.”
Kempf also completed that “the industry is waiting impatiently for economic policy of the Federal Government, especially in the tax, digitization and energy policy.”
At the same time, he also emphasized that “in our society, xenophobia has no place.” And, “investments by foreign companies and the integration of skilled workers from other countries contribute significantly to prosperity and jobs in Germany.”
