Percorso:ANSA > Nuova Europa > News > German economy forecast to slow sharply

German economy forecast to slow sharply

If Britain leaves the EU without a deal, it could get worse

04 April, 14:29
(ANSA-AP) - BERLIN, APRIL 4 - A group of leading German economic research institutes slashed their growth forecast for the country on Thursday, warning that if Britain leaves the European Union without a deal, it could get even worse. In a joint statement, the five institutes said they were reducing their autumn forecast of 1.9 percent growth for Europe's largest economy downward to 0.8 percent after concluding "political risks have further clouded the global economic environment." The new assessment is in line with that issued last month by the German government's panel of independent economic advisers, and lower than the government's own 1 percent prediction. The institutes, DIW, ifo, IfW, IWH and RWI, said they reached their conclusion March 29, "when it still seemed that a hard Brexit would be avoided." "This has now become less likely, but is still possible," they said. "However, if a no-deal Brexit occurs, economic growth this year and the next is likely to be significantly lower than indicated in this forecast." More than the political risks, the report concluded the economic slump in the second half of 2018 was "primarily due to obstacles to production in industry." (ANSA-AP).

© Copyright ANSA - All rights reserved