Germany's economy struggled in the third quarter on a dip in car manufacturing but the drivers of its recent expansion remain in place, so growth should rebound in the final three months of the year, the Bundesbank said on Monday. With the European Union implementing a new motor vehicle emissions certification system, German auto makers struggled to gain regulatory clearance while production was also dampened by big dealership discounts to clear stock before the new rules came into effect.
Germany has been the engine of the euro zone's five-year growth run and its recent wobbles have increased worries that growth cycle may be coming to a premature end, before some countries have had time to fully recover from the bloc's debt crisis less than a decade ago.
The German government recently cut its 2018 growth forecast to 1.8 percent from 2.3 percent and also lowered the 2019 projection to 1.8 percent from 2.1 percent, citing the impact of global trade disputes, labour shortages and the auto sector's difficulties.
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