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German economic institutes slash 2019 growth forecast - sources

German economic institutes slash 2019 growth forecast - sources
FILE PHOTO: The skyline with its financial district is photographed early evening in Frankfurt, Germany, October 8, 2018. REUTERS/Kai Pfaffenbach -
Kai Pfaffenbach(Reuters)
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BERLIN (Reuters) – Germany’s leading economic institutes have revised down their growth forecast for Europe’s biggest economy for this year, two sources with knowledge of their decision told Reuters on Monday.

The revisions, which feed into the government’s own output projections, reflect growing concerns that a slowdown in Germany driven by a recession in the export-dependent manufacturing sector could hamper the broader euro zone economy.

The institutes expect the German economy to grow by 0.5% this year, two sources said. One of the two sources said growth of 1.1% is expected in 2020. The institutes had said in April they expected growth of 0.8% this year and 1.8% in 2020.

The institutes, which will present their new growth forecasts on Wednesday, foresee an expansion of 1.4% in 2021, one source said.

(Reporting by Rene Wagner; Writing by Joseph Nasr; Editing by Alexander Ratz and Alison Williams)

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