The economic upturn in Germany is weakening, according to the country’s leading council of experts, who have lowered their outlook. Uncertainty about global economics was part of the group’s reasoning.
The German Council of Economic Experts on Wednesday decided that previous expectations for Germany's gross domestic product (GDP), for both 2018 and 2019, had been far too rosy.
The council of five experts — known in Germany as the "Five Sages of the Economy" — said the "uncertain future of the global economic order" and demographic change were behind its decision to lower the forecast.
Notable drop in growth
A need to bolster spending
Among the actions proposed by the council to help reinvigorate the economy through increased individual spending were:
The group also said it was important for the European Union to be able to oppose trends towards protectionism, including the use of retaliatory measures within the rules of the World Trade Organization. The advice comes after the US imposed tariffs on European steel and aluminum, prompting the EU to hit back with levies of its own.
Successfully concluding newfree trade agreements would also help, the experts said.
The group also recommended minimizing the effects of Brexit on both the economies of the EU and the UK.
rc/sms (AFP, dpa)