Bundesbank President Jens Weidmann warned that German economy could slow sharply in 2019. Growth rate could eventually be lower than 1%. He pointed to IMF’s new projections of just 0.8% for this year and noted that’s entirely plausible. It’s just half the rate of 1.6% Bundesbank projected back in December.
Weidmann also added, “Fiscal policy, as the minister (Finance Minister Olaf Scholz) said, is already expansionary in Germany and we estimate the impact of fiscal policy on GDP for this year to be between one quarter to one half percentage point.”
