BERLIN (Reuters) - Germany's BDI industry association said on Tuesday it had lowered its 2018 growth forecast for Europe's largest economy, citing weaker demand for German goods due to increased business uncertainty and U.S. President Donald Trump's trade policies.
BDI now expects the German economy to grow by 2.0 percent this year, down from a previous estimate of 2.25 percent, BDI President Dieter Kempf told broadcaster Deutschlandfunk.
Exports are seen rising by 3.5 percent in real terms, below the BDI's previous forecast of 5 percent, he said.
"You can see and feel the uncertainty that is arising. A further escalation of the trade conflict between China and the United States would of course also hit Europe, and in particular German industry that is very dependent on exports, hard" he said.
The trade dispute has not had any major effects on German companies yet but is causing enormous uncertainty, Kempf added.
(Reporting by Riham Alkousaa; Editing by Maria Sheahan)