The government lowered its expectations from the previous forecast of 0.3 percent growth for this year, as the country failed to achieve recovery in the second half of the year.
And it was Germany’s economy Already the weakest among its major counterparts Eurozone And countries Group of Seven last year, with GDP falling by 0.3 percent.
Prior to these expectations, the head of the German Central Bank said, Joachim NagelOn Tuesday, the German economy is likely to witness another year of contraction, with the US elections posing an additional risk to Europe’s growth.
Nagel said in Berlin: “This year we do not expect any growth at all, or perhaps even a recession, because the second half of the year looks much weaker than we thought six months ago.”
And it was German Central Bank He had forecast growth of 0.3 percent in June, but said last month that gross domestic product may have stopped growing or declined in the third quarter, after a slight decline in the previous three months.
“Economic uncertainty is what characterizes the second half of the year and this has surprised us more negatively than we thought a few months ago,” Nagel added.
According to the latest International Monetary Fund forecasts, Germany will be the only economy in the Group of Seven countries to suffer from deflation if economic output shrinks for the second year in a row, which last happened in 2002 and 2003 when the export and manufacturing industries suffered.
Economy shrank Germany in the second quarter, raising fears of a potential recession, which is defined as two consecutive quarters of contraction.
The Ministry of Economy said that early indicators, such as industrial production and the business climate, all indicate that the economic slowdown continued in the second half of the year.
