The German government downgraded its growth outlook citing slowdown in China and other emerging economies.
In the Autumn forecast, the economy ministry said Wednesday real gross domestic product is set to grow 1.7 percent instead of prior forecast of 1.8 percent.
The economy is forecast to expand 1.8 percent in 2016, unchanged from previous projection.
“The German economy continues to grow,” Economy Minister Sigmar Gabriel said. It remains on track despite the dampened global economic outlook with weaker growth in China and commodity-rich emerging economies.
The government projected exports to grow 5.4 percent this year and 4.2 percent in 2016. Growth in imports is estimated to be 5.9 percent in 2015 and 5.3 percent next year.
Private consumption would be the main pillar of support, the ministry said. Domestic demand is forecast to increase 1.7 percent and 2.1 percent in 2015 and 2016, respectively.
The ministry estimated 2.3 percent growth in government spending in 2015 and 2 percent in 2016.
The material has been provided by InstaForex Company – www.instaforex.com