BERLIN, Sept 30 — Germany’s leading economic institutes have revised down their growth forecast for Europe’s biggest economy for this year, two sources with knowledge of their decision told Reuters today.
The revisions, which feed into the government’s own output projections, reflect growing concerns that a slowdown in Germany driven by a recession in the export-dependent manufacturing sector could hamper the broader euro zone economy.
The institutes expect the German economy to grow by 0.5 per cent this year, two sources said. One of the two sources said growth of 1.1 per cent is expected in 2020. The institutes had said in April they expected growth of 0.8 per cent this year and 1.8 per cent in 2020.
The institutes, which will present their new growth forecasts on Wednesday, foresee an expansion of 1.4 per cent in 2021, one source said. — Reuters
