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5/28/2019, 10:01 AM (Source: TeleTrader)
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German DIHK cuts 2019 growth outlook to 0.6%

The Association of German Chambers of Commerce and Industry (DIHK) said on Tuesday that the expected expansion in gross domestic product for this year was lowered to 0.6% from 0.9%. The rate is almost three times smaller than what it forecasted in October. The report was published after a survey with representatives of more than 25,000 domestic companies.

The body's president Eric Schweitzer stressed industrial producers have suffered a blow from a slowdown in the global economy. The outlook for overseas has deteriorated to a decade low and export growth is seen at 1.2% in 2019, compared to last year's 2%, he said, interpreting it as an "alarm signal." The forward-looking assessment of the business climate dropped by seven points from the start of the year, while the overall estimates are still in positive territory.

Hiring plans have been scaled back to the lowest level in almost five years, DIHK found and called on the government to introduce tax relief, citing the current "disadvantage" against other developed economies. It said domestic demand is driving the activity, led by the retail sector and construction.

Breaking the News / IT