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  • The German economy is facing one of the weakest years since the financial crisis. The economic researchers at the Kiel Institute expect gross domestic product to grow by only 0.4% in 2019, 0.2 percentage points less than previously forecast. Such weak figures were last seen in 2013 in the wake of the euro debt crisis. However, the economy should pick up again in the middle of next year. In 2021, public budget balances enter deficit territory.

    The German economic outlook has been adversely affected above all by the political uncertainty caused by trade conflicts and the Brexit crisis, with investment and exports coming under particular pressure. In addition, there are cyclical factors due to the previous long upswing. In the third quarter of 2019, gross domestic product (GDP) is expected to shrink by 0.3%, following a slim decline of 0.1% in the second quarter.

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