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Germany Lowers 2020 Growth Forecast as Slowdown Persists

  • Flagging growth momentum could put balanced budget in jeopardy
  • Slowing economy could advance talks for fiscal stimulus
St. Pauli Piers near the port of Hamburg.

St. Pauli Piers near the port of Hamburg.

Photographer: Krisztian Bocsi/Bloomberg

Updated on

Chancellor Angela Merkel’s government cut its 2020 growth forecast as Europe’s biggest economy expects the pinch from waning global demand, Brexit and lingering trade disputes to carry over into next year.

Gross domestic product will expand by 1% next year, compared with an earlier expectation of a 1.5% increase, the Economy Ministry said Thursday in a statement. While the outlook is an improvement from this year’s 0.5% projection -- which the government kept steady -- the pace is a notable slowdown from previous years.