IMF announces its latest set of forecast revisions for the German economy
- Previously seen at 2.5%
- 2019 growth forecast lifted from 2.0% to 2.1% though
- Sees substantial short-term risks for German economy
- Potential risk factors include rising protectionism, hard Brexit, reassessment of sovereign debt in the Eurozone
- Germany should use fiscal leeway to further raise public investments, boost long-term growth potential
Following the many downward revisions including those by the Bundesbank themselves and Ifo, the IMF is next to cut forecasts for the German economy this year. As highlighted several times before, domestic demand is still solid but trade and factory activity remains the biggest risk for the German economy thus far and that is reflected in the slowing exports/factory output data.
We'll be getting factory orders for May later on in the day as well, and so far up until April they haven't been great.
