Government lowers growth forecast to 2019

The Brexit and the trade disputes of the German economy. The Federal government expects this year with economic growth of 1.0 percent.

The Federal government expects this year with economic growth of 1.0 percent. Thus, the government lowered its expectations for the gross domestic product (GDP) - in its autumn forecast, it was still 1.8 per cent growth.

In the past year, the German economy grew by 1.5 per cent. In 2017, the increase was 2.2 percent. The growth had slowed down"," said business Minister Peter Altmaier. The Federal Republic of Germany was but still on the upswing - and in the longest uninterrupted growth period since 1966.

Brexit and trade conflicts

Altmaier made at the presentation of the annual economic report, especially the growing "against the wind" from the external economic environment for the weaker forecast responsible. For this purpose, the forthcoming Brexit and continued to belong to trade conflicts, as well as the international fiscal environment, said Altmaier.

business Minister Peter Altmaier believes that more "good years" be able to follow.

of The labour market develops according to the forecasts of the Ministry continues to be positive. The unemployment rate will decline this year to 4.9 percent from 5.2 percent last year, it said. The number of employees will rise to 45.2 million. In the result, private income to take, therefore, wages and salaries are likely to rise in 2019 by an estimated 4.8 percent.

relief for companies and the removal of a solidarity surcharge

Altmaier called for billion-reliefs, especially for businesses. "The good years ahead, if we act wisely and prudently," said the politician. Necessary to direct the focus on "growth impulses and the technologies of the future". Companies should be encouraged to invest. Planning should be accelerated and bureaucratic barriers reduced.

in addition, the Minister of economy calls for a timetable for a complete removal of the solidarity surcharge. The "solos" plan the Union and the SPD for 2021 a reduction of € 10 billion Euro, intended to exempt 90 percent of the Soli-payer. The SPD is removal against a Complete.

"the purpose of pessimism" of the Federal government?

in their prediction the Federal government is at the top of the economic pessimists. All the major research institutes are expecting a stronger growth. Therefore, criticism from the camp of the Economists: "I think that is the purpose of the pessimism of the Federal government," said the Director of the Union-affiliated IMK Institute, Gustav Horn. "Because you want to say in the course of this year, that everything is much better than it was initially expected, thanks largely to your efforts in a difficult external economic environment." The economic momentum is still intact and will, in particular, driven by private consumption.