Germany's leading economic institutes slashed the economic growth forecast for this year and next, on Wednesday, mainly citing the weakening global demand for capital goods exports.
The growth forecast for this year was lowered to 0.5 percent from 0.8 percent and the outlook for next was slashed to 1.1 percent from 1.8 percent. "Reasons for the poor performance are the falling worldwide demand for capital goods - in the exporting of which the Germany economy is specialized - as well as political uncertainty and structural changes in the automotive industry," the think tanks said.
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Business News
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.