News ID: 260899
Published: 1129 GMT October 30, 2019

German exports to shrink next year, first fall since global financial crisis

German exports to shrink next year, first fall since global financial crisis
An employee moves car components in a production line at the Volkswagen plant in Wolfsburg. (REUTERS)

Germany's DIHK Chambers of Industry and Commerce said it expected exports to shrink next year for the first time since the global financial crisis over a decade ago as trade disputes and Brexit uncertainty hit Europe's largest economy.

"For our economy, with its strong industrial core, this is a huge challenge," DIHK President Eric Schweitzer said when presenting the association's latest business sentiment survey among more than 28,000 managers, Reuters reported.

DIHK said it expects Germany's annual export growth to slow to 0.3 percent this year from 2.1 percent in 2018, adding that exports are likely to shrink by 0.5 percent next year.

"Since the financial crisis of 2008/2009, the DIHK has not received such pessimistic replies from the companies," Schweitzer said.

He pointed out that Germany's average export growth rate was normally around 5.5 percent.

Due to the bleak trade outlook, the DIHK cut its 2019 gross domestic product growth forecast for the German economy to 0.4 percent from 0.6 percent previously.

It forecasts GDP growth of 0.5 percent for 2020, adding that the increase was mainly due to an unusual high number of working days next year.

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