On Wednesday, both the German Kiel Institute for the World Economy (IfW) and DIW economic institute slashed their outlook on 2019 German GDP growth.
Key Points:
IfW sees German economy expanding by 0.4% this year vs. 0.6% previous forecast.
Sees 2020 GDP at 1% vs. 1.6% previous.
German economy likely shrank by 0.3% in Q3, falling into a technical recession
DIW sees German economy expanding by 0.5% this year vs. 0.9% previous forecast.
Sees 2020 GDP at 1.4% vs. 1.7% previous.
Further risk next year comes from no-deal Brexit.
If that happens, it would slash a further 0.4% off 2020 economic growth.
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