A sign of 40th anniversary of the establishment of diplomatic relations between the United States and China is seen at SIAL food innovation exhibition, in Shanghai, China, May 14, 2019. REUTERS/Aly Song
MUNICH (Reuters) – The trade conflict between the United States and China is the main source of uncertainty for the German economy, an economist at Ifo said on Monday after the institute’s survey showed business morale deteriorating in June.
Britain’s expected departure from the European Union and rising tensions between Iran and the United States are not main sources of uncertainty, Ifo economist Klaus Wohlrabe said.
He added that tensions with Iran could have an impact in the case of a major escalation or if the oil price rises significantly.
Wohlrabe said he did not expect the German economy to plunge into recession.
Reporting by Joern Poltz; Writing by Michelle Martin; Editing by Joseph Nasr