German Govt Ups 2020 Growth Forecast To 1.1%

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German govt ups 2020 growth forecast to 1.1%

The German government on Wednesday upped its economic growth outlook for 2020 slightly, predicting a solid domestic performance that will help offset risks from abroad

Frankfurt am Main, (UrduPoint / Pakistan Point News - 29th Jan, 2020 ) :The German government on Wednesday upped its economic growth outlook for 2020 slightly, predicting a solid domestic performance that will help offset risks from abroad.

With gross domestic product expected to grow 1.1 percent, "the economy will develop better this year than we expected last year," when Berlin estimated the 2020 gain at 1.0 percent, Economy Minister Peter Altmaier said in a statement.

"Prospects have improved (but)... we have to improve growth, competitiveness and productivity" to preserve Germany's economic strength, he added.

Hit by uncertainty over the US-China trade conflict and Brexit and a global growth dip, weakness above all in export-oriented manufacturing firms resulted in German growth slowing to 0.

6 percent last year.

For 2020, the next Brexit steps are clear under a new majority Conservative government led by Boris Johnson while the US has signed a "phase one" trade deal with China, allaying some of the worst fears.

At home, unemployment hovering around 5.0 percent -- close to its lowest point since German reunification in 1990 -- rising wages and lower tax and social charges should provide a solid foundation.

But in the months and years ahead, megatrends such as the impact of an ageing population and measures to lower greenhouse emissions pose challenges for sustaining growth, while "risks persist in the foreign trade environment," Altmaier warned.