German BGA trade body slashes 2016 export forecast

[BERLIN] Germany's trade and wholesale association BGA said on Tuesday that it expected German exports to grow by up to 2.5 per cent in 2017 after cutting its forecast for this year to a maximum of 2 per cent export growth, citing growing global uncertainties.

Global demand for German goods has slowed significantly, with Britain's decision to leave the European Union among several factors increasing uncertainty and complicating investment decisions, the association said.

"At all ends of the world there is crisis, not least at the gates of Europe and also within our most important core market," BGA head Anton Boerner said during a news conference.

Mr Boerner told Reuters back in August that the BGA was slashing its 2016 forecast for export growth due to increasing risks, including Brexit.

The forecast for German export growth of up to 2.0 per cent in 2016 marks a sharp correction from its previous forecast of up to 4.5 per cent published in April.

Exports - which used to be the main growth driver of Germany's economy - had increased by 6.5 per cent as recently as 2015.

Germany will next week publish trade figures for August. Exports fell unexpectedly in July, posting their steepest monthly drop in nearly a year, adding to concerns that the economy is set for a slowdown in the second half.

REUTERS