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German government cuts 2020 growth forecast but sees no crisis

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German government cuts 2020 growth forecast but sees no crisis
FILE PHOTO: The skyline with its banking district is photographed in Frankfurt, Germany, August 13, 2019. REUTERS/Kai Pfaffenbach   -   Copyright  KAI PFAFFENBACH(Reuters)
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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)

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