Germany’s IfW and DIW cut German 2019 GDP growth forecast

Dhwani Mehta FXStreet

On Wednesday, both the German Kiel Institute for the World Economy (IfW) and DIW economic institute slashed their outlook on 2019 German GDP growth.

Key Points:

IfW sees German economy expanding by 0.4% this year vs. 0.6% previous forecast.

Sees 2020 GDP at 1% vs. 1.6% previous.

German economy likely shrank by 0.3% in Q3, falling into a technical recession

DIW sees German economy expanding by 0.5% this year vs. 0.9% previous forecast.

Sees 2020 GDP at 1.4% vs. 1.7% previous.

Further risk next year comes from no-deal Brexit.

If that happens, it would slash a further 0.4% off 2020 economic growth.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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