Brexit poses risk\, but German economy poised for further growth: minister

Brexit poses risk, but German economy poised for further growth: minister

Reuters  |  BERLIN 

(Reuters) - Britain's impending departure from the poses a big risk, but domestic demand is still fueling growth in the German economy, Europe's largest, said in an interview published on Thursday.

Altmaier said Brexit, global trade conflicts and changes in automotive industry approvals had slowed economic growth in the second half of 2018, but Germany's still looked set to enter its tenth year of expansion in 2019.

"The order books of industry and the trades are full," Altmaier told the newspaper. "The chances are good that economic growth will continue for a tenth consecutive year," the longest period of continuous growth since the 1960s.

The German last month cut its economic growth forecast for 2018 to around 1.5 to 1.6 percent from 1.8 percent.

The German economy has shifted into a lower gear as and trade conflicts sparked by U.S. Donald Trump's "America First" policies cause business uncertainty.

German exporters are also struggling with a more general slowdown of foreign demand as the global economy cools.

Altmaier cautioned that the prospects for continued economic expansion hinged on the ability of German industry to adapt to promising new areas such as electric mobility, and

He said both and a shortage of skilled labour posed risks to the economy, and many companies had not invested enough in expanding production. He called for quick parliamentary approval of a new aimed at filling those gaps.

Making it easier to attract skilled workers to could boost economic growth by several tenths of a percentage point, he said, noting that had some 57,000 unfilled trainee positions.

"The growth effects are difficult to quantify, but I expect that a functioning influx of migrants to the labour market could add multiple tenths of a percentage point of additional growth in Germany," Altmaier told the paper.

(Reporting by Andrea Shalal; editing by Grant McCool)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 03 2019. 08:49 IST