Report: German government slashes 2020 growth forecast

People enjoy the sunset in front of a container ship at the Elbe river in Hamburg Germany March 20, 2018. The report said the predictions could be revised up or down by a minimal amount before the government publishes its forecasts on October 17. — Reuters pic
People enjoy the sunset in front of a container ship at the Elbe river in Hamburg Germany March 20, 2018. The report said the predictions could be revised up or down by a minimal amount before the government publishes its forecasts on October 17. — Reuters pic

BERLIN, Oct 11 — The German government is cutting its 2020 growth forecast for Europe’s largest economy to 1.1 per cent from its April prediction of 1.5 per cent, German magazine Der Spiegel reported today, without citing sources.

It said the government would stick to its forecast that the economy will grow by 0.5 per cent this year and would therefore narrowly avoid a recession.

The report said the predictions could be revised up or down by a minimal amount before the government publishes its forecasts on October 17.

Two sources told Reuters that the government would significantly cut its 2020 forecast.

A spokeswoman for the Economy Ministry said the government’s forecasts had not yet been finalised, adding she could not comment until the government presents its predictions.

Earlier this month, Germany’s leading economic institutes, whose forecasts feed into the government’s own estimates, slashed their estimates, saying they expected the German economy to grow by 0.5 per cent this year and 1.1 per cent in 2020. — Reuters

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