Arab Today, arab today german thinktanks warn of recession slash forecasts
Last Updated : GMT 15:56:23
Arab Today, arab today
Arab Today, arab today

German think-tanks warn of recession, slash forecasts

Arab Today, arab today

Arab Today, arab today German think-tanks warn of recession, slash forecasts

Berlin - AFP

Germany\'s leading economic think tanks warned on Thursday there was a \"great danger\" that Europe\'s top economy could fall into recession, as they slashed their growth forecasts for next year in half. The four institutes -- Ifo in Munich, IfW in Kiel, IW in Halle and RWI in Essen -- also lashed out at the European Central Bank, saying its latest anti-crisis measures risked fuelling inflation in the 17 countries that share the euro. \"The euro crisis is negatively impacting economic activity in Germany,\" the institutes wrote in their joint twice-yearly forecasts, published here on Thursday. \"Should the situation in the eurozone continue to deteriorate, this will also impact the German economy. Over the forecasting period as a whole the downside risks prevail and there is a great danger that Germany will fall into a recession,\" they warned. While Germany clocked up growth of 0.5 percent in the first quarter and 0.3 percent in the second quarter, \"there are currently a large number of signs that overall economic expansion will weaken towards the end of the year,\" they wrote. As a result, gross domestic product (GDP) was projected to grow by 0.8 percent overall this year and by 1.0 percent next year. That marked a downgrade from the institutes\' previous spring forecasts when they had been pencilling in growth of 0.9 percent for this year and 2.0 percent for next year. Furthermore, the latest projections were based on the assumption that the situation in the euro area, currently grappling with its worst-ever crisis, would stabilise. If it did not then Germany, which has held up much better to the long-running crisis than its eurozone partners, could find its economy going backwards, they said. Chancellor Angela Merkel acknowledged that after two \"very good\" years of growth, that this year would be \"weaker.\" \"If you believe the forecasts -- I cannot be more precise -- we will have maybe 0.8 percent, 0.9 percent, around one percent,\" Merkel told reporters after meeting Hungarian Prime Minister Viktor Orban. The German government publishes its twice-yearly forecasts next week. Reacting to the report, Economy Minister Philipp Roesler warned of \"considerable risks\" to the German economy which, he said, \"could not be immune forever to the crisis in partner countries and a worldwide economic cool-down.\" \"Our economy will therefore only grow at a moderate pace,\" he cautioned in a statement. Turning to the ECB\'s controversial decision to buy up the sovereign bonds of debt-wracked countries under its so-called OMT programme, the experts said such measures risked fuelling inflation in the single currency area. The institutes \"see the risk of a mid-term rise in inflation,\" they said. \"This process could be triggered by the ECB effectively providing monetary financing for states. Europe\'s citizens and players in the markets may lose trust in the ECB\'s ability to ensure long-term price stability as a result,\" the report said. The ECB\'s Outright Monetary Transactions programme, as well as its predecessor the Securities Market Programme (SMP), have frequently come under heavy fire in Germany as being a covert way for the central bank to pay off countries\' debt by simply printing money. \"In the longer term there is a great danger that the ECB will continue to purchase bonds and provide excessive monetary policy stimulation even if states deviate from the adjustment programmes, which could drive up prices and lead to an increase in inflation expectations,\" the institutes warned. Inflation in Germany slowed slightly in September, according to official data published earlier Thursday, but remained at the European Central Bank\'s target rate. The German consumer price index (CPI) rose by 2.0 percent on a 12-month basis this month, according to final cost-of-living data.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today german thinktanks warn of recession slash forecasts Arab Today, arab today german thinktanks warn of recession slash forecasts

 



Arab Today, arab today
Arab Today, arab today Rabia Fatima reveals role of "Facebook" in her career

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career
Arab Today, arab today Messi visit will contribute in tourism

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector

GMT 05:57 2017 Wednesday ,22 February

Britain risks clash with EU over RBS bailout

GMT 05:26 2017 Wednesday ,22 February

Singapore carbon tax would hit refiners, help renewables

GMT 05:18 2017 Wednesday ,22 February

Chinese PM: US should avoid ‘trade war,’

GMT 20:59 2017 Tuesday ,21 February

Economy good, but homes in German cities overpriced
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday