This content is not available in your region

German upswing continues despite trade conflicts

German upswing continues despite trade conflicts
FILE PHOTO: A construction site is pictured in Berlin, Germany, May 31, 2018. REUTERS/Axel Schmidt   -   Copyright  AXEL SCHMIDT(Reuters)
Text size Aa Aa

BERLIN (Reuters) – The German economy remains on a growth track due to strong domestic demand, but the upswing is being slowed down by a difficult trade environment and temporary effects in the automobile sector, the Economy Ministry said on Thursday.

“Trade conflicts, emerging market currency turmoil and geopolitical conflicts weigh on the global economy and have increased general uncertainty about the economic development,” the ministry said in its monthly report.

“The postponement of the British parliament’s vote on the Brexit agreement has not averted the risk of a disorderly exit of the United Kingdom from the European Union,” it added.

On the other hand, the government’s agreed measures such as lowering the income tax and increasing benefits for families with children will give the economy an additional boost from the beginning of next year, the ministry said.

“All in all, the German economy should perform well in this difficult environment,” it said.

Economy Ministry Peter Altmaier on Monday lowered the government’s growth forecast for this year to around 1.5 to 1.6 percent, down from the previous estimate of 1.8 percent.

(Reporting by Michael Nienaber,; Editing by Joseph Nasr)

euronews provides breaking news articles from reuters as a service to its readers, but does not edit the articles it publishes. Articles appear on for a limited time.