German Government Cuts 2015 Growth Forecast to 1.7 Percent

The German government slightly lowered its growth forecast on Wednesday to 1.7 percent for this year, blaming an economic slowdown in China and other emerging markets, but it confirmed its prediction of a 1.8-percent expansion next year.

In April, the government had forecast growth of 1.8 percent for Europe’s largest economy for this year.

“The German economy is continuing to grow. It remains on track despite the subdued outlook for the global economy with weaker growth in China and commodity-rich emerging markets,” Economy Minister Sigmar Gabriel said.

The Economy Ministry estimated exports would surge by 5.4 percent this year and by 4.2 percent next year while imports would increase by 5.9 percent and 5.3 percent respectively.

That means foreign trade will only make a small contribution to growth this year. Private consumption will probably be the only pillar of support next year, the ministry said.

Reuters

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