A prominent German research institute was the latest to scale back its 2019 economic forecast for Germany on Thursday, cutting expected growth nearly in half to 0.6 per cent from 1.1 per cent.
The Ifo institute believes that a downturn in the industrial sector will slow the pace of growth in Germany's economic output. Industrial production "will largely fail to act as an economic engine in 2019" Ifo senior economist TimoWollmershaeuser said.
Global demand for German-made products is to falter further as markets around the world weaken.
"But the domestic driving forces are still intact," the economist added.
Last week, the Organisation for Economic Cooperation and Development (OECD) revised their predictions for Europe's largest economy downwards to 0.7 per cent from 1.6 per cent. The German government also lowered its prognosis.
Ifo believes the drop in pace is to be short-lived: The institute raised its prediction for 2020 to 1.8 per cent from 1.6 per cent.
"The current production difficulties in German manufacturing are likely to be overcome only gradually," Wollmershaeuser said.
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