KfW Business Cycle Compass Germany August 2019
News from 2019-08-27 / KfW Research
The German economy shrank by 0.1% in the second quarter. In the short term, there is little hope for improvement. Manufacturers in particular are struggling; their business and export expectations remain pessimistic. KfW Research therefore now expects average real growth of only 0.4% for the year 2019 and 0.6% for 2020 (previous forecast: 0.8% and 1.8%). With exacerbated trade conflicts and the increasing likelihood of a hard Brexit, the external headwinds will continue for now and hamper domestic investment activity.