#ukmfg #BGA Germany’s BGA trade association has reduced its forecasts for both exports and imports this year. BGA president Anton Boerner (pictured) said the euro-zone debt crisis is “weighing heavily” on demand for German goods, with recession in southern Europe likely to worsen in the short-term. He also expressed concern about the economic situation in Italy.
He said: “How the situation in the euro-zone develops will be decisive for a sustainable improvement of trade. I am increasingly pessimistic about the ability to reform those countries particularly hard hit by the debt crisis.
The situation in Italy in particular promises nothing good, given that the main forces in society do not seem interested in comprehensive structural reform.”
The BGA cut its forecast for export growth to 3% (from November’s forecast of 5 %), while reducing its imports growth forecast to 1% (from 5.5% in November).
“The recovery in the world economy is keeping us waiting, and it is set to be less dynamic than previously assumed,” Mr Boerner added. “As such, the strong growth rates in trade that we used to see are now a thing of the past.”