German exports in fastest decline since global crisis

German exports plunged in August by their largest amount since the height of the global financial crisis and leading institutes cut 2015 growth forecasts in the latest sign that an emerging market slowdown is hurting Europe’s largest economy.

The institutes stuck to their forecast for 1.8% growth next year, however, saying private consumption, boosted by low unemployment, strong wage gains and a positive impact from refugees, would offset the weaker export momentum.

A stream of negative headlines, from weak industrial orders and output data to Volkswagen’s emissions scandal and Deutsche Bank warning of a €6bn pre-tax loss in the third quarter have raised the risks of disappointing third quarter growth.