Brexit, Trump and Italy cloud outlook for German economy

[BERLIN] Britain's decision to leave the European Union, unpredictable US policy under president-elect Donald Trump, and political uncertainty in Italy are key risks facing the German economy, the Economy Ministry said on Monday.

It added that despite those risks, the global economic environment seems to be gradually brightening up, especially as emerging markets like Brazil and Russia are expected to exit recessions, which will benefit German exports.

"Uncertainties remain high, however, not least because of Brexit, the unpredictability of future US policy, and the political situation in Italy," the ministry said in its monthly report.

Growth in Europe's largest economy is expected to pick up in the fourth quarter after a slowdown in the July-Sept period, it said, adding that a robust labour market is continuing to sustain private consumption, which has been propping up the economy as exports wane.

REUTERS