German industry federation sees global recession risks rising

16th February, 2019 09:17:01 printer

BERLIN: The Federation of German Industries (BDI) sees an elevated risk of global recession, according to its world economic outlook published on Friday.

A global recession could be triggered especially by "rising U.S. federal funds rates as well as particularly flat interest rate curves, escalating trade conflicts or a disorderly Brexit," warned Joachim Lang, director general and member of the Presidential Board of BDI, reports Xinhua.

The German federation anticipates the global economy to grow by 3.25 percent in 2019. While China's gross domestic product (GDP) is expected by the BDI to grow by approximately 6.25 percent, BDI predicts the U.S. economy to grow by 2.25 percent in 2019.

One "grave wrong decision" would be enough to put Europe's economic development at particular risk, emphasized Lang. For 2019, BDI expects the economy of the European Union to grow by 1.5 percent, and it anticipates a 1.5 percent growth for the German economy as well.