Germany lowers 2019 growth forecast to 0.5%

Courtesy of Deutsche Welle

The German government on Wednesday announced it expected significantly lower economic growth for 2019 than previously announced.

This year, it expects the gross domestic product to grow just 0.5%, down from the 1% previously forecast. The forecast is more pessimistic that industry predictions, with leading economists lowering their growth forecast to 0.8%.

Economics Minister Peter Altmaier, a member of the conservative Christian Democrat party, said the new statistics were a “wake-up call” for the country, saying politicians needed to think about how to they could stimulate growth. Altmaier called for reforms on taxes, levies and bureaucracy. He also proposed a moratorium on measures that would burden the economy.

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