Germany's Economy Ministry: Strong Domestic Demand Supports German Economy
In its monthly report, Germany’s Economy Ministry stated, that the German economy remains on a growth track due to strong domestic demand, but the upswing is being slowed down by a difficult trade environment and temporary effects in the automobile sector. The report also says, that trade conflicts, emerging market currency turmoil and geopolitical conflicts weigh on the global economy and have increased general uncertainty about the economic development.
Earlier this week, the Germany’s Economy Ministry lowered the government's growth forecast to around 1.5%-1.6% for this year, down from the previous estimate of 1.8%.
Meanwhile, initial third-quarter growth data showed the German economy shrunk by 0.2% quarter-on-quarter and showed the first contraction since the first quarter of 2015. The figure was also below an estimate for a 0.1% contraction.