Ifo warned in the Economic Forecast Autumn 2019 that German economy is at risk of recession. -0.1% GDP contraction is expected in Q3, thus, together with -0.1% drop in Q2, that’s a technical recession. Also, 2019 growth forecast was downgraded from 0.6% to 0.5%.
Ifo noted: “This downturn was triggered by a series of world political events calling into question a global economic order that had evolved over decades and required adjustments to established international value chains. As a result, economic uncertainty worldwide rose to historic highs and the international economy cooled off increasing”.
“Meanwhile, world trade and world industrial production are declining. In addition, automobile manufacturers in particular are facing an abrupt technology shift, which in some cases brings with it enormous adaptation requirements.”