Quarterly Report Germany IV/2018

German economy shrinks for first time in three years. WLTP emissions test curbs vehicle production

The BDI is expecting real economic output to increase 1,5 percent for the year 2018 overall compared to the last year. Main factors for the correction of the growth rate was the downturn in vehicle production due to the new emissions testing procedure, which is also affecting supplier industries and car dealers. Foreign trade also pulled down GDP growth.