Germany’s IfW and DIW cut German 2019 GDP growth forecast

On Wednesday, both the German Kiel Institute for the World Economy (IfW) and DIW economic institute slashed their outlook on 2019 German GDP growth.

Key Points:

IfW sees German economy expanding by 0.4% this year vs. 0.6% previous forecast.

Sees 2020 GDP at 1% vs. 1.6% previous.

German economy likely shrank by 0.3% in Q3, falling into a technical recession

DIW sees German economy expanding by 0.5% this year vs. 0.9% previous forecast.

Sees 2020 GDP at 1.4% vs. 1.7% previous.

Further risk next year comes from no-deal Brexit.

If that happens, it would slash a further 0.4% off 2020 economic growth.