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5/3/2019, 10:51 AM (Source: TeleTrader)
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Weidmann: Downside risks still dominant

Germany's government expects economic growth of only 0.5% this year, which is realistic due to risks from trade tensions in the world and Brexit uncertainties, Bundesbank President Jens Weidmann said on Friday and noted the potential rate of expansion is significantly higher at 1.5%. Downward-pointing factors persist and dominate the outlook as the slowdown, particularly pronounced in the Eurozone's largest economy in the second half of last year, also affected other member states, he estimated and acknowledged inflation isn't seen returning back up toward the target 2% as quickly as rate-setters have forecast at year-end.

The member of the Governing Council of the European Central Bank pointed to the intensification of the effects of aging and added Germany is one of the countries that feel the biggest impact. Potential economic growth will slip under 1% by 2030, he stressed.

Germany is still a rich and politically stable country, but the dangers to the foundations of prosperity may have been overlooked, according to Weidmann, one of the potential candidates to replace ECB President Mario Draghi at the end of his term this year. He underscored the industry weakened as a whole rather than just in the automotive sector, while that foreign trade has lacked momentum since the beginning of last year.

Breaking the News / IT