March 11, 2019 / 6:48 AM / 8 months ago

German government lowers GDP forecast again - Handelsblatt

FILE PHOTO: The 'Europacity' construction site is pictured in Berlin, Germany, July 27, 2018. REUTERS/Fabrizio Bensch/File Photo

BERLIN (Reuters) - Germany’s federal government internally revised its growth outlook for Europe’s biggest economy in 2019 to 0.8 percent, the second revision in less than two months, business daily Handelsblatt said on Monday, citing a government document.

“Internally, the Federal Government is only expecting 0.8 percent growth in 2019,” Handelsblatt cited a confidential note of the finance ministry as saying.

A weakening world economy, risks such as an escalation of trade conflicts, and political risks in Europe such as Brexit and Italy’s financial situation were reasons for the economic slowdown the note had mentioned, Handelsblatt said.

The German government had in January lowered its growth expectations for 2019 to 1.0 percent from a previously expected 1.8 percent.

On Wednesday, the Organisation for Economic Co-Operation and Development (OECD) also lowered its growth forecast for Germany to 0.7 percent, a cut of 0.9 percentage points.

“The current OECD forecast for 2019 on the grounds of present data does not seem to be implausible”, Handelsblatt cited the ministerial note as saying.

Reporting by Tassilo Hummel; Editing by Kim Coghill

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