German upswing continues despite trade conflicts
“Trade conflicts, emerging market currency turmoil and geopolitical conflicts weigh on the global economy and have increased general uncertainty about the economic development,” the ministry said in its monthly report.
“The postponement of the British parliament’s vote on the Brexit agreement has not averted the risk of a disorderly exit of the United Kingdom from the European Union,” it added.
On the other hand, the government’s agreed measures such as lowering the income tax and increasing benefits for families with children will give the economy an additional boost from the beginning of next year, the ministry said.
“All in all, the German economy should perform well in this difficult environment,” it said.
Economy Ministry Peter Altmaier on Monday lowered the government’s growth forecast for this year to around 1.5 to 1.6 percent, down from the previous estimate of 1.8 percent. – Reuters