Given the high risks in the context of global economic development and capacity bottlenecks, economies will reduce economic forecasts. The German Economic Council (Sachverständigenrat) assesses global economic developments for the current year only by boosting gross domestic product by 1.6%, among other reports Frankfurter Allgemeine Zeitung.
So far, experts expected a plus of 2.3%. In 2019, economic growth is expected to reach 1.5%. In March, the Expert Council assumed 1.8%. Business practices present their annual report on Wednesday afternoon in Berlin.
The reasons for this are the lack of qualified workers, for example in construction or with IT experts, for a growing problem. In the third quarter, the massive issues of the major automotive industry over the new WLTP exhaust gas testing method have also slowed down.
There are risks around the world, mainly due to trade conflicts, such as those between the US and China, the US and the EU. The low overall growth also affects Germany's exports. In addition, there is uncertainty as the exit from the EU remains unclear.
The federal government cut its forecasts in mid-October. Gross domestic product is expected to grow by 1.8% this year and 2019. At the same time, Federal Minister for the Economy, Peter Altmaier (CDU), stressed that the German economy will enter the 10th year of growth next year. Rhythm is getting closer to citizens: Wages have risen and unemployment has fallen