Germany's Ifo institute has slashed its 2019 growth forecast for Europe's largest economy to 0.6 percent from 1.1 percent due to weaker foreign demand for industrial goods. However,Ifo see the weakness as being short-lived and expects a rebound to 1.8 percent growth in 2020.

"Industry won't drive overall growth. Global demand for German products is weak because the world economy is losing further steam," Ifo economist Timo Wollmershaeuser said.