The German economy is still in turmoil. Experts recorded a sharp decline of key indicators and a slowdown in growth. According to the Federal Ministry for Economic Affairs and Energy, German GDP will rise only 0.5% this year.
Looking back, the beginning of 2019 was marked by positive results. The German authorities forecasted GDP to increase by 1.8%. However, the upturn was followed by a decline. In the third quarter of 2019, experts expect a further decrease in the economy.
Negative sentiment has affected the outlook for 2020. According to the German government, the country's GDP is likely to grow by no more than 1% instead of the previously forecasted 1.5%.
Federal Minister for Economic Affairs and Energy Peter Altmaier said that the updated assessment does not indicate the risk of crisis. He points out that trade tensions and Brexit hardly hurt Germany’s export-oriented industry. Moreover, domestic demand remains high. Peter Altmaier focused attention on the construction boom, as well as on increasing income and the employment rate in Germany.
The primary objectives of the German economy will be taxation burden reduction, bureaucratic procedures minimization, as well as an investment in future technologies. These measures should help the country’s economy to recover, Peter Altmaier believes.
