ifo Institute cuts German growth forecast
Munich-based ifo Institute has announced a further revision of its GDP growth forecast for Germany in 2014, from 1.3 previously anticipated to 1%.
The reduction of estimates is among others based on the continued decline of the monthly ifo business climate index, which dropped from 104.7 to 103.2 points between September and late October.
According to ifo president Hans-Werner Sinn, the persistent decline of the index points to economic stagnation at the end of this year.
„The new average outlook for economic growth in Germany is according to our preliminary estimates again somewhat lower, approximately at 1%. However, it should be kept in mind that there is at this point in time still a relatively high margin of uncertainty“ argues Sinn.