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German Growth Will Fall to Zero If No-Deal Brexit Happens: BDI

The Federation of German Industries (BDI) expects Germany’s economy to grow by 0.5% this year, half a percentage point lower than the industry group’s forecast in June.
Bloomberg
By Bloomberg
9 Sep
Steel Packaging Production At Thyssenkrupp Rasselstein GmbH An employee inspects steel coils on the cold rolling line at the Thyssenkrupp Rasselstein GmbH steel packaging factory in Andernach, Germany, on Thursday, Aug. 9, 2018. Thyssenkrupp AG, which employs 60,000 people in Germany, is one of the world's largest steel producers. Photographer: Krisztian Bocsi/Bloomberg

And if Britain leaves the European Union at the end of October without a deal, Germany’s growth will fall to zero, the group said in its’ third quarter report published Sunday.“Germany’s economy will continue to lose steam until the end of the year,” BDI’s Director General Joachim Lang said in a statement. “Economic uncertainty remains high, because of global trade tensions and the U.K.’s exit from the EU.”

A technical recession in Germany is becoming “more likely,” after gross domestic production fell by 0.1 percent in the second quarter, the group said. The BDI manager has been urging the government to change its’ fiscal policy to kick start growth.

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