BERLIN (Reuters) – The German government has lowered its 2020 forecast for economic growth to 1.0% from 1.5% previously, the Economy Ministry said on Thursday, but added that Europe’s largest economy was not facing a crisis.
Berlin still sees this year’s gross domestic product (GDP) growth rate at 0.5%, the ministry said, confirming news of the revised projections reported by Reuters on Tuesday.
“Economic developments in Germany are currently divided,” Economy Minister Peter Altmaier said in a statement. “But even if the outlook is currently subdued, there is no threat of an economic crisis.”
Export-orientated industries were under pressure due to trade conflicts, Brexit and related uncertainty, Altmaier said, but the domestic economy remained in good shape.
Looking ahead, the ministry added: “The low point in developments in international trade should soon be reached.”
(Writing by Paul Carrel; Editing by Tassilo Hummel)