German Economy Ministry said in its March economic report that the economy has a subdued start to 2019. And the country “has become more troubled due to higher risks and uncertainties in the external environment.” This applies in particular to manufacturing with significant fall in production in January. The “weak phase” is likely to continue due to “sluggish foreign demand”.
Though, the ministry expects growth to continue in other sectors, in particular most service sectors. This was underlined by “recent significant increase in employment” those sectors. With the conflicting tension between weak manufacturing and prospering services, GDP will likely increase “at best moderate” in Q1.
The government lowered 2019 growth forecast to 1.0% back in January and will update the projections again in April.
