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EU sharply cuts Germany's economic outlook for external woes

Source: Xinhua| 2019-05-08 00:39:30|Editor: yan
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BRUSSELS, May 7 (Xinhua) -- The European Commission cut its economic growth outlook for Germany from 1.1 percent to 0.5 percent on Tuesday.

"The GDP growth forecast for 2019 has been revised down significantly compared to the Commission's winter interim forecast from 1.1 percent to just 0.5 percent," the European Economic Forecast published by the EU's executive arm said.

The reasons are largely external, according to the forecast, which said "business sentiment and order inflows have been deteriorating as a global manufacturing slowdown, mounting protectionism in key trading partners have affected Germany disproportionally given the economy's openness and industrial structure."

2020 will be better, the forecast said "assuming a gradual recovery in foreign trade later this year and a solid expansion in private consumption, helped by growing incomes and a fiscal expansion, GDP growth is expected to strengthen to 1.5 percent in 2020, boosted also by a significant calendar effect."

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