Germany’s Ministry of Economic Affairs on Thursday revised downward its economic growth forecast for 2020 but does not feel the country is threatened by a “crisis”.
Europe’s largest economy expects to be affected by lower global demand and problems linked to Brexit and trade.
Berlin forecasts economic growth of 1% next year, instead of the 1.5% expected up to Spring 2019. For this year, the ministry has maintained its forecast of 0.5%, which was already very low, especially when compared to 2.2% in 2017 and 1.4% last year.
German industry has been feeling the weight of trade wars and Brexit, which have spawned uncertainty and inhibited investment. However, domestic demand has remained intact.
“Jobs and incomes are on the increase and the construction sector is booming,” said Economic Affairs Minister Peter Altmaier.
German workers pay less taxes and social security contributions, which leaves them with more disposable income.
The Brussels Times