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Significant Cooling of the Economy — Political Risks High

The German economy has cooled noticeably since mid-2018, and the long-term upswing has thus apparently come to an end. This weaker momentum was triggered both by the international environment and by industry-specific events. The global economic environment has deteriorated — due in part to political risks — and the manufacturing sector is struggling with obstacles to production. Germany’s economy is currently going through a cooling-off phase in which capacity shortages in the economy as a whole are declining. The institutes expect economic growth of only 0.8% in 2019, which is more than one percentage point less than in autumn 2018.

23. April 2019

Authors Roland Döhrn Oliver Holtemöller Stefan Kooths Claus Michelsen Timo Wollmershäuser

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