Ifo sees a German recession this year
Ifo cuts its GDP forecast for the German economy
- Sees 2019 GDP growth forecast at 0.5% (previously 0.6%)
- Sees 2020 GDP growth forecast at 1.2% (previously 1.7%)
- Expects Q3 GDP to fall by 0.1% q/q; possible slight recovery in Q4
This feeds into the other growth forecast cuts we saw yesterday here. Ifo also notes that the industrial weakness is starting to spread to other sectors and that's pretty much a warning sign in my view that things may get worse before they get better for Germany.