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GERMAN ECONOMY OUTLOOK 2017

How the economy will develop in the near future can only be estimated. Governments, international organizations and industry researchers regularly attempt to predict the possible economic development using various assumptions. Forecasts made for the German economy all point to a positive start in 2017! The statistics show a development of the real gross domestic product (GDP) in Germany. In 2016, GDP in Germany grew, according to the forecast of the DIW by 1.9 percent over the previous year. Thus, for the year 2017 a slight increase compared with the previous year is estimated. 

Sigmar Gabriel from Federal Minister of Economy and Energy states that the German economy is progressive. As a result of rising wages and increasing employment, Germany operates on a solid growth path in 2017. Reasons for the GDP -growth are mainly the increasing consumption of private households.  

Private consumption remains the pillar of the improvement since the income of households is good, due to the continued improvement in the labor market. Business investments will expand due to an extremely favorable financing environment. In addition, the construction boom continues. The depreciation of the Euro encourages exports until the second half of 2017. In the course of the coming year, the global economy cools down slightly and dampens the growth of exports. Imports will grow even faster due to the high domestic economic dynamics. Overall, it is expected that the demand will be generated from the domestic market.   

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Angela Gerolometto

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