Ifo Institute Chops Forecast for German 2019 Growth to 0.6%

(Bloomberg) -- One of Germany’s most prestigious research institutes nearly halved its projection for 2019 growth and now sees Europe’s economy suffering its worst performance in six years.

In one of the most pessimistic forecasts for Germany, the Ifo Institute now expects expansion of just 0.6 percent, down from 1.1 percent previously. It reckons the weakness will prove short-lived however, and raised its 2020 prediction to 1.8 percent.

It added that this year may put German consumers in a sweet spot due to strong wage gains, tax relief and low inflation.

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