German economy is forecast to expand at slower pace this year and next as global economic risks increased significantly, according to a forecast from the think tank IFO. It is now projected that the economy to expand 1.8% each this year and next. Earlier, the IFO had forecast 2.6% growth for 2018 and 2.1% in 2019. The agency said economic capacity shortages will persist over the forecasting period, accompanied by a consolidation in both wage and price increases. Meanwhile, external demand will contribute less to the upturn since the world economy will be less dynamic, Ifo said. Private consumption and construction investment will increasingly drive economy.