Germany raises 2020 growth forecast slightly to 1.1%

The German government raised its forecast for GDP growth for 2020 and promised to create all conditions for the influx of investments into the country in order to maintain the competitiveness of Europe’s largest economy.

According to the forecast, this year German GDP growth will amount to 1.1%. Such expectations coincided with forecasts of the International Monetary Fund, presented last week.

It is noted that last year, the German economy grew by only 0.6%, at the lowest rate since 2013. Experts note a significant slowdown in the country's economic development compared to a 1.5% rise in 2018. The reason for this was a slowdown in the global economy, trade tensions and uncertainty regarding Brexit.

Germany predicts high consumer spending and export growth, while trade is still a serious risk due to the potential imposition of U.S. duties on European cars. The German government also outlined a spending plan that would allocate more than €160 billion by 2023 in the areas of digital infrastructure and transport.