Germany slashes growth outlook on Brexit, trade fears
FRANKFURT, Germany (AP) — The German government has slashed its growth forecast sharply for this year, to 1.0 percent from 1.8 percent in last fall’s outlook, as fears about a chaotic Brexit and trade tensions hold back Europe’s largest economy.
Economy Minister Peter Altmaier said Wednesday the German economy would grow for a 10th year in a row. But he said “the headwinds, primarily from the external environment, are increasing.”
German businesses are unsettled about the possibility that Britain will leave the EU without agreeing on trade rules for a transition period. New import taxes imposed by the U.S. and China are also weighing on prospects for global trade. That hurts the outlook for Germany because the country is a major exporter.
Germany’s economy grew 1.5 percent last year and 2.2 percent in 2017.