IFO lowers forecast for German economic growth for 2020

122040

Experts from the Institute for Economic Research (IFO) published a new report, according to which the German economy in 2020 will grow by 1.7%, and not by 1.8%, as previously estimated. At the same time, the growth forecast for the current year is left at 0.6%. The deterioration of the forecast is due to weak data on industrial production in the country, which is expected to adversely affect economic growth. At the same time, consumer spending, which will grow by 1.4% this year, will support Germany’s GDP growth, and their growth is expected to reach 1.3% next year. The forecast also suggests an increase in investment in 2019 by 3%, in 2020 – by 2.8%. According to IFO estimates, a slowdown in global economic growth will cause a slowdown in export growth to 1.3% this year. Next year, exports are expected to grow by 3.8%. The acceleration of inflation in 2020 is also predicted to 1.8% from 1.5% in 2019. A further decrease in the unemployment rate in Germany is expected – to 4.9% this year and 4.8% next year.

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