Ifo institute maintains 2019 German growth forecast at 0.6%, but revised down 2020 growth forecasts by -0.1% to 1.7%. Private consumer pending is expected to drive the economy, rise 1.4% in 2019 and 1.3% in 2020. Investments are expected to growth 3.0% and 2.8% respectively,d riven by construction. Export is expected to grow just 1.3% in 2019 and normalizes to 3.8% in 2020.
Timo Wollmershaeuser, Head of ifo Economic Forecasts, said “there are increasing signs that industrial weakness is gradually spreading to the domestic economy via the labor market and deep value chains.” And, “that means the German economy will enter the coming year without any momentum.” Wollmershaeuser also warned, “economic policies that attempt to change the globalized economic order through isolation, sanctions, and threats have increased uncertainty worldwide, cooled industrial activity, and caused world trade to collapse.”
