Brexit, Trump and Italy cloud outlook for German economy: Economy Ministry

BERLIN Britain’s decision to leave the European Union, unpredictable U.S. policy under president-elect Donald Trump, and political uncertainty in Italy are key risks facing the German economy, the Economy Ministry said on Monday.

It added that despite those risks, the global economic environment seems to be gradually brightening up, especially as emerging markets like Brazil and Russia are expected to exit recessions, which will benefit German exports.

“Uncertainties remain high, however, not least because of Brexit, the unpredictability of future U.S. policy, and the political situation in Italy,” the ministry said in its monthly report.

Growth in Europe’s largest economy is expected to pick up in the fourth quarter after a slowdown in the July-Sept. period, it said, adding that a robust labor market is continuing to sustain private consumption, which has been propping up the economy as exports wane.

(Reporting by Joseph Nasr- Editing by Michelle Martin)