Ifo institute said Germany’s economy stabilized in Q3 but remains divided, with manufacturing industry “caught in recession”. Though, spread of industrial weakness has been “limited to industry-oriented service providers”. There has been “no indirect transmission to consumer- and construction-related sectors. At present, there is “no grounds” to fear an “economy-wide recession”. Ifo forecasts GDP growth to accelerate form 0.5% in 2019 to 1.1% in 2020, and then 1.5% in 2021.
For Eurozone, economic momentum is “not expected to get any worse at this juncture”, even though it will “take several quarters before” a “tangible recovery”. GDP is expected to growth 1.2% in 2019, 1.2% in 2020, and then 1.3% in 2021.
