Germany cuts 2019 GDP growth forecast to 0.5% from 1.0%
It's finally official now
- Expects economy to rebound in 2020, GDP growth forecast of 1.5%
- Says trade disputes and Brexit are weighing on German growth
- Sees inflation at 1.5% in 2019 and 1.8% in 2020
- Expects export growth of 2.0% in 2019 and 1.8% in 2020
- Expects import growth of 3.8% in 2019 and 4.0% in 2020
This has been long rumoured for the past week already but the headline is finally made official. Still, any confirmation isn't really good news as the risk here is that we could see potential further downgrades if the economy doesn't pick up.
For some context, the German government already slashed its forecast in January from 1.8% to 1.0% before the revision here.