(Bloomberg) -- The German government's independent council of economic advisers slashed its growth forecast for this year, citing weaker demand in key export markets.
The group also said the economic boom in Europe's largest economy is “over for now,” though it ruled out a deep slump. “In light of the robust domestic economy, a recession isn't on the cards at the moment,” said Chairman Christoph Schmidt.
After a rough 2018 for the economy -- battered by a range of issues from weather to auto industry setbacks -- the council now expects expansion of 0.8 percent in 2019, down from a previous prediction of 1.5 percent. Growth will accelerate to 1.7 percent in 2020, it said.
The council's 2019 forecast is one of the lowest among economists, and below the consensus of economists in Bloomberg's latest monthly survey. The influential Ifo Institute nearly halved its projection earlier this month, to just 0.6 percent.
To contact the reporter on this story: Andrew Blackman in Berlin at ablackman@bloomberg.net
To contact the editors responsible for this story: Sree Vidya Bhaktavatsalam at sbhaktavatsa@bloomberg.net, Fergal O'Brien, Jana Randow
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