German government cuts 2020 growth forecast but sees no crisis

Visitors ride bicycles past the Reichstag, seat of the German parliament, the Bundestag, on July 13, 2015 in Berlin, Germany.Sean Gallup | Getty Images News | Getty ImagesThe German government has lowered its 2020 forecast for economic growth to 1.0% from 1.5% previously, the Economy Ministry said on Thursday, but added that Europe’s largest economy was not facing a crisis.Berlin still sees this year’s gross domestic product (GDP) growth rate at 0.5%, the ministry said, confirming news of the revised projections reported by Reuters on Tuesday. “Economic developments in Germany are currently divided,” Economy Minister Peter Altmaier said in a statement. “But even if the outlook is currently subdued, there is no threat of an economic crisis.”Export-orientated industries were under pressure due to trade conflicts, Brexit and related uncertainty, Altmaier said, but the domestic economy remained in good shape.Looking ahead, the ministry added: “The low point in developments in international trade should soon be reached.”

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