THE German economy is losing steam as rising trade tensions abroad and a lack of skilled workers at home limit the growth prospects for Europe’s largest economy, Economy Minister Peter Altmaier has said.

Presenting the government’s downwardly revised growth forecasts, Altmaier said the economy would expand by 1.8 percent in both 2018 and 2019.

This compared with earlier projections of 2.3 percent and 2.1 percent respectively. In 2017, the economy grew by a calendar-adjusted 2.5 percent.

Germany’s vibrant domestic economy will continue to propel growth this year and next, with imports rising at a faster pace than exports and net trade expected to hold back an upswing that is seen entering its tenth year in 2019, Altmaier said.

“This is the longest upswing since 1966, the second longest ever,” he added, pointing to record-high employment, rising real wages and planned tax relief for workers.

Germany’s strong domestic demand means that rising imports will help to lower the country’s large current account surplus to 7.1 percent of GDP in 2019 and 6.7 percent in 2020.

The growth outlook is clouded, however, by protectionist tendencies and U.S. trade disputes with Europe and China, Altmaier said. (SD-Agencies)