German Economy Minister Peter Altmaier said on Thursday he expects Europe’s largest economy to grow by 1.8 per cent in 2018, a substantially lower estimate than the 2.3 per cent provided by the government earlier this year.
Altmaier said that the slowing growth in gross domestic product (GDP) could be put down to international risks including US trade disputes with the European Union and China.
He added that despite the growth forecast, Germany’s unemployment rate would continue its downward trajectory and salaries would continue to rise.
Earlier this week, the International Monetary Fund (IMF) lowered its GDP growth forecast for Germany to 1.9 per cent in 2018 and 2019. The estimate for 2018 was 0.6 percentage points lower than the figure it provided in April.