Comments by Ifo economist, Klaus Wohlrabe, after the report earlier
- Order books are well-filled in the construction sector but doesn’t expect new ones
- US-China trade dispute is the main cause of uncertainty
- Brexit and Iran conflict are not playing a dominant role at the moment
- Impact from Iran only if oil price rises significantly or tensions escalate considerably
Ifo reaffirmed their 2019 GDP growth forecast for the German economy at 0.6% last week here. Recent economic data suggests that the country is headed for a weak growth expansion this year with Q2 likely to show signs of stagnating. However, if that carries over to Q3 and Q4, expect more recession talks to follow in the coming months.