ROUNDUP: Economic researchers expect zero growth this year

MUNICH (dpa-AFX) – Three leading economic research institutes significantly lowered their forecasts on Thursday. The Munich-based Ifo Institute and the IWH in Halle are now expecting zero economic growth for this year, while the RWI in Essen is expecting 0.1 percent. Ifo economic chief Timo Wollmershäuser says: “The German economy is stuck,” while “other countries are feeling the upswing.” This is not just due to the economy: “We have a structural crisis.”

The order backlog in industry and construction has been reduced, both sectors have shrunk, and there is a widespread lack of orders. In industry in particular, too little investment is being made, and productivity has been stagnating for years, says the Munich professor. Although the global economy is growing, exports are weakening: “German companies are losing global market share as a result,” says RWI economics chief Torsten Schmidt.