Ifo Economic Forecast Summer 2019: 2020 German GDP growth forecast slashed to 1.7%

In its latest economic forecasts for Summer 2019, the German Ifo institute on Tuesday cut the 2020 growth forecast for the German economy to 1.7% vs. 1.8% previously.

The Ifo cited that the weakness in Germany’s industrial sector seems to be spilling over into labor market and domestic economy.

Ifo economist Timo Wollmershaeuser said: “There is a diverging economic development: the export-oriented manufacturing sector, which accounts for about a quarter of economic output, is in recession.” 

“However, there are increasing signs that the weakness in the industrial sector is gradually spilling over into the domestic economy via the labour market and value creation chains.”