Euronews is no longer accessible on Internet Explorer. This browser is not updated by Microsoft and does not support the last technical evolutions. We encourage you to use another browser, such as Edge, Safari, Google Chrome or Mozilla Firefox.

BREAKING NEWS

BREAKING NEWS

Bundesbank slashes German growth forecasts

Bundesbank slashes German growth forecasts
FILE PHOTO: Aerial view of containers at a loading terminal in the port of Hamburg, Germany August 1, 2018. REUTERS/Fabian Bimmer -
Copyright
Fabian Bimmer(Reuters)
Text size Aa Aa

FRANKFURT (Reuters) – Germany’s central bank cut its growth and most of its inflation projections on Friday, reflecting weak external demand that will more than offset a relatively robust growth in domestic consumption and investment.

The Bundesbank now sees 2019 GDP growth in the euro zone’s biggest economy at 0.6%, well below the 1.6% it forecast in December, and it also lowered next year’s forecast to 1.2% from 1.6%.

“The weak underlying cyclical trend is likely to continue in the second and third quarters of 2019,” it said in a statement. “After a slight decrease in the second quarter, real GDP is likely to pick up again somewhat in the third quarter.”

Inflation this year is still expected at 1.4% but the bank lowered the 2020 projection to 1.5% from 1.8%, well below the European Central Bank’s target of close to but below 2%.

(Reporting by Balazs Koranyi; Editing by Andrew Heavens)

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