BERLIN — Germany's main industry lobby has cut its 2014 growth forecasts for Europe's largest economy, saying the crises in Ukraine, Iraq and the Middle East were creating uncertainty for companies, a newspaper reported on Saturday.
Sueddeutsche Zeitung said in its online edition the BDI industry association had reduced its 2014 growth forecast to about 1.5 percent from a previous 2 percent.
"Companies are feeling the headwinds. Uncertainty is increasing," the paper quoted BDI president Ulrich Grillo as saying. Grillo said sanctions against Russia — although needed — were "really hurting" German companies active there.
The German economy, which had powered ahead early this year thanks to an unusually mild winter boosting construction, suffered a surprise 0.2 percent contraction in the second quarter, leading some economists to warn of a risk of recession.
Recent surveys have shown business morale weakening and private sector growth slowing, but the latest data has been upbeat: industrial orders, output and the trade surplus all surged in July.
The Organization for Economic Cooperation and Development, or OECD, last week slashed its growth forecast for 2014 growth in Germany to 1.5 percent from its May estimate of 1.9 percent.
While the government predicts the economy will expand by 1.8 percent, Finance Minister Wolfgang Schaeuble has said it may just miss that forecast, according to sources.
The BDI was not immediately available for comment.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
