ifo Economic Forecast for Eastern Germany and Saxony Winter 2019: Eastern German Economy – Recession Canceled, Risks Remain

A recession has been canceled for the time being, but economic development is still overshadowed by risks. The industry has been recession since the beginning of 2019. Weak world trade and technological change in vehicle construction are putting a strain on industrial production, which is particularly noticeable in the automotive stronghold Saxony. On the other hand, consumer-related service providers and the construction sector are benefiting from the good domestic economic situation. Overall, the East German economy is expected to expand by 0.8 percent and 1.4 percent in 2019 and 2020, respectively. In the Free State of Saxony, the growth rates are likely to be 0.3 percent and 1.2 percent.