The BDI industry association said Germany’s manufacturing production is expected to decline 4 percent this year. Because of weaker foreign demand, the country’s exports edged up just half a percentage point.
China’s cooling economy, international trade disputes, and uncertainty linked to Britain’s decision to leave the EU are hitting Germany’s export-reliant manufacturers.
After two years with annual growth rates of 3 percent, the BDI expects global industrial output to rise only 1 percent this year.
The export growth projected at 0.5 percent for 2019. Meanwhile, a 2.1 percent expansion happened the year before. Since the world financial crisis in 2009, this marked the weakest rise in foreign sales.
Compared with BDI’s initial forecast for stagnation, the 4 percent drop in manufacturing output expected for 2019. In 2018, manufacturing production rose by 1.2 percent on the year. Indicating the country has lost its position as the economic powerhouse of the eurozone, Germany expects its economy to grow 0.5 percent this year.
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