Germany Further Slashes 2019 Growth Forecast
Faizan Hashmi 5 days ago Wed 17th April 2019 | 04:16 PM
Berlin halved its economic growth forecast for 2019 on Wednesday as Europe's largest economy cools off, but ministers are unlikely to bend to foreign demands to boost activity with extra government spending
Berlin, (UrduPoint / Pakistan Point News - APP - 17th Apr, 2019 ) :Berlin halved its economic growth forecast for 2019 on Wednesday as Europe's largest economy cools off, but ministers are unlikely to bend to foreign demands to boost activity with extra government spending.
"The German economy has not yet overcome the weakening in the economic upturn" that had been visible until mid-2018, he added, although "over the remainder of the year there are prospects of a significant recovery." It is the second downgrade in a row, after Altmaier's January prediction of 1.0 growth for 2019 was 0.8 points lower than an autumn forecast.
But more structural challenges are also present, including an ageing population and a chronic lack of public investment in infrastructure and high-tech innovations.
To avoid the German slowdown contaminating the rest of the eurozone, "the available fiscal space can be used to increase public investment in physical and human capital or reduce the labour tax wedge", the IMF judged.
The Washington-based fund also slashed the country's growth forecast to 0.8 percent, in line with domestic bodies such as Berlin's "Wise Men" council of economic advisers and leading think-tanks.