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Germany: Ifo, economy at risk of recession

Growth in 2019 likely to amount to 0.5% over previous year

12 September, 17:22
(ANSA) - BELGRADE, SEPTEMBER 12 - The German economic growth in 2019 is likely to amount to 0.5% over the previous year, a "considerably lower rate than in the past years," the Ifo Institute said today. The institute cut its 2019 forecast for the German economy from previous 0.6%.

Ifo added that a recession is looming over Germany, the largest and most important economy in Europe, forecasting that the GDP could shrink by 0.1% in the third quarter, after a similar contraction in the second quarter of the year. The scenario is caused also by external uncertainties, such as a hard Brexit or an escalation of trade wars.

However, Ifo added that the German economy is likely to gradually return to normal in 2020, with growth up to 1.2% (0.8% adjusted for calendar effects). (ANSA).

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