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5/7, 2:05 PM (Source: TeleTrader)
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EU cuts Germany's growth forecast to 0.5%

The European Commission cut its forecast for the 2019 economic growth in Germany for a second time this year and now it expects Eurozone's largest economy to grow at a rate of 0.5% this year, the commission's latest economic forecast said on Tuesday. The newest growth figure puts Germany as the second worst in the bloc when it comes to the annual rate of economic growth.

"After a sharp slowdown in the second half of 2018 and early 2019, economic growth is expected to recover somewhat on the back of resilient domestic demand, the dissipation of temporary production bottlenecks and a gradual improvement in foreign demand," the European Commission said.

The newest data also indicated that the account surplus in Germany is decreasing, but that it still remains high, while "the fiscal stance is expected to be moderately expansionary over the forecast period." Germany's budget surplus is set to reach 1% in 2019 and drop back to 0.8% next year. Meanwhile, the country's government debt is forecast to fall to 56% in 2020 from this year's 58%.

Breaking the News / SS