(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).
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