Germany slashes growth forecast to 1.8pc

Business | 11 Oct 2018 7:26 pm

The German government has cut its forecast for economic growth this year to 1.8 percent from 2.3 percent, in part because of rising global trade tensions.

The government also trimmed its 2019 outlook for Europe's biggest economy today, saying that it now expects 1.8 percent growth rather than the 2.1 percent expansion it predicted in April. Last year, gross domestic product grew 2.2 percent, Germany's strongest performance in six years.

Economy Minister Peter Altmaier said a statistical revision and delays in registering new cars accounted for most of the change, but "smoldering trade conflicts worldwide'' played a part.

He said an escalation of tensions between the U.S. and Europe was averted, but "the underlying problems haven't yet really been solved'' and U.S.-China tensions are affecting global growth.-AP. Photo: dpa

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