The outlook for Germany's economic growth in 2012 has darkened over the past few weeks as the risk of a world-wide recession grows, the German Institute for World Economy (IfW) told Handelsblatt daily. The Kiel-based institute said in June it expected Europe's largest economy to grow by 1.6 percent next year after 3.6 percent this year.
But the IfW's Joachim Scheide said in an interview to be published on Monday he would be "more pessimistic about this today" due to debt problems in the United States and Europe. Germany has recovered swiftly from its deepest post-war recession in 2009, outpacing eurozone peers, but its growth is expected to have peaked.
Its economy grew by 1.5 percent in the first quarter of the year and many economists expect expansion in the second three months of 2011 to cool to 0.5 percent or less. Scheide said the impact of the "distinct cooling in the world economy" on Germany would start becoming apparent in the coming quarters.
Comments
Comments are closed for this article.