Germany's Growth Rates Expected To Fall In 2019 - Research Group

Faizan Hashmi Published March 14, 2019 | 06:21 PM

Germany's growth rates are expected to decrease from 1.5 percent in 2018 to 0.6 percent in 2019 amid the global economic slowdown, a research group said Thursday

MOSCOW (UrduPoint News / Sputnik - 14th March, 2019) Germany's growth rates are expected to decrease from 1.5 percent in 2018 to 0.6 percent in 2019 amid the global economic slowdown, a research group said Thursday.

The Ifo Institute worsened its forecast by almost a half from previous 1.1 percent.

"The current production difficulties in German manufacturing are likely to be overcome only gradually. The industry will largely fail to act as an economic engine in 2019. Global demand for German products is weak, as the international economy continues to lose momentum.

But the domestic driving forces are still intact," Timo Wollmershaeuser, head of Ifo business cycle analysis and forecasts, said in a published statement.

In contrast, the unemployment rate is forecast to fall by 0.3 percent to 4.9 percent in 2019, and equal 4.7 percent in 2020. The number of those employed is set to grow by some 400,000 to 45.2 million in 2019.

The Ifo Institute added that the government spending growth will demonstrate a strong rise from 1 percent in 2018 to 2.6 percent in 2019.