Germany’s central bank cuts 2019 growth prediction to 0.6%

German economic growth over the course of 2019 is set to come in at 0.6 per cent, the central bank predicted on Friday.

The figure is sharply down from the 1.6-per-cent growth in gross domestic product that the Bundesbank predicted six months ago.

Private consumption was helping to keep Europe’s largest economy ticking over, but industry was suffering the effects of slowing exports, the bank said.

“Once foreign demand picks up again, growth in the German economy will once again be more broadly based,” Bundesbank President Jens Weidmann said.

The bank is working on the assumption that exports will rise gradually over the second half of the year.

Bundesbank predicts growth of 1.2 per cent in 2020, down from the 1.6 per cent predicted in December.

The German government has also cut its growth forecast for 2019 – to 0.5 per cent, from the previous 1.0 per cent.

In 2018, German GDP grew by 1.4 per cent.

Source: dpa