March 19, 2019 / 10:12 AM / 2 months ago

German economic advisors slash 2019 growth forecast to 0.8 percent

FILE PHOTO: Aerial view of containers at a loading terminal in the port of Hamburg, Germany August 1, 2018. REUTERS/Fabian Bimmer

BERLIN (Reuters) - A panel of advisers to the German government slashed its growth forecast for this year to 0.8 percent and warned risks related to Britain’s departure from the European Union, trade disputes and a sharper than expected slowdown in China remained high.

The group that advises the German government on economic policy had in November forecast that Europe’s largest economy would expand by 1.5 percent this year.

The panel said on Tuesday economic growth had slowed significantly, partly due to problems in the chemical and auto sectors and warned that a spiral of protectionist measures had the potential to push the economy into recession.

But Christoph Schmidt, one of the advisers, said: “The German economic boom is over but a recession is not currently expected due to the robust domestic economy.”

The group predicted the economy would grow by 1.7 percent in 2020.

Reporting by Michelle Martin; Editing by Madeline Chambers

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