The Federal government has reduced mainly due to a slowdown in world trade growth forecast for 2020. There is no economic crisis, the threat of but. The number of employed will continue to rise.
The Federal government is looking more skeptical on the economy in the coming year. The economy is expected to grow in 2020 by only 1.0 percent, and thus noticeably lower than in the spring, with the 1.5 percent expected, said the economy Ministry on Thursday to its new economic forecast. “But even if the prospects are currently muted, there will be no economic crisis,” said Minister Peter Altmaier.
For the current year, the government expects to continue with a meager growth of 0.5 percent. For comparison: at the beginning of the year, you had estimated here is 1.8 percent.
The weak global trade will be a burden to the export-oriented German producers, said Altmaier. The domestic demand is still intact, and will be supported by fiscal stimulus, in addition, said Altmaier. Employment and incomes increased, the construction industry was in a boom. By the end of 2020, the number of unemployed will make climbing to 45.4 million.
Bottomed out soon
However, it is likely to be achieved in the development of international trade, the bottom of the valley soon, it said. Altmaier confirmed that he wished to strengthen his proposals for middle class and industrial companies, and the economy thus pushing. “We now need growth policy with tax relief and bureaucracy market-economic solutions in the energy transition, investments in future technologies, and more efforts in the field of digitisation of removal.”
In the second quarter of 2019, the German economy had shrunk slightly. Experts expect that it has also given, in the third quarter with a Minus. Then Germany would be officially in recession. The data will be published in mid-November.
hb/dk (dpa,rtr,afp)