German Growth Rate to Fall Sharply This Year, Ifo Warns

Germany’s pace of growth will drop sharply as demand for the country’s products weakens amid a slowing global economy, according to a forecast by a leading research group, the Financial Times reported. The Munich-based Ifo Institute cut its 2019 economic growth rate estimate for the eurozone’s largest economy from 1.1 per cent to 0.6 per cent. The German economy expanded 1.5 per cent in 2018, the slowest since 2013, according to official data. The outlook echoes official figures out this week that showed a sharp drop in industrial production, which added to fears that the manufacturing slowdown has extended into 2019. “The current production difficulties in German manufacturing are likely to be overcome only gradually,” Timo Wollmershaeuser, head of Ifo business cycle analysis and forecasts, said on Thursday. Read more