The German government believes that economic growth will pick up this year compared to last year. The Minister of Economic Affairs Peter Altmaier announced this on Wednesday. For 2020, Berlin now expects growth of 1.1 percent, from an estimated 0.6 percent in 2019, which was the weakest growth rate in six years.
According to Altmaier, the outlook for the German economy has improved. Last fall, Berlin was still counting on a 1 percent improvement in this year. Germany suffered from global trade tensions last year, weakness in the automotive industry and uncertainty surrounding the brexit. In the meantime, the United States and China have reached a provisional trade deal, while Brexiton rest has also declined now that Britain’s departure from the European Union will certainly continue.
The German industry association BDI is more cautious with its forecasts for 2020, with a growth forecast of 0.5 percent.