Reuters: German growth limited by trade disputes, labor shortages11 October 2018 | 17:27 | FOCUS News Agency
Presenting the government’s downwardly revised growth forecasts, Altmaier said the economy would grow by 1.8 percent in both 2018 and 2019.
This compared with earlier projections of 2.3 percent and 2.1 percent respectively. In 2017, the German economy grew by a calendar-adjusted 2.5 percent.
Germany’s vibrant domestic economy will continue to propel growth this year and next, with imports rising at a faster pace than exports and net trade expected to hold back an upswing that is seen entering its tenth year in 2019, Altmaier said.
“This is the longest upswing since 1966, the second longest ever,” he added, pointing to record-high employment, rising real wages and planned tax relief for workers.
Germany’s strong economy means that rising imports will help to lower the country’s large current account surplus to 7.1 percent of GDP in 2019 and 6.7 percent in 2020.
The growth outlook is clouded, however, by protectionist tendencies and international trade disputes, Altmaier said. The economy would also expand at a faster rate if companies were able to find skilled workers more quickly.
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