1. Home
  2. Studies
  3. Economy Buoyed by the Labour Market: Successes Not to Be Squandered IW Economic Forecast Spring 2017
IW-Forschungsgruppe Konjunktur IW-Trends No. 2 18. May 2017 Economy Buoyed by the Labour Market: Successes Not to Be Squandered IW Economic Forecast Spring 2017

The German economy remains on an expansion course, with real gross domestic product expected to grow by over 1 ½ percent in 2017 and by 1 ¾ percent in 2018, the lower number of working days acting as a brake on macroeconomic performance in the current year.

Download PDF
Successes Not to Be Squandered IW Economic Forecast Spring 2017
IW-Forschungsgruppe Konjunktur IW-Trends No. 2 18. May 2017

Economy Buoyed by the Labour Market: Successes Not to Be Squandered IW Economic Forecast Spring 2017

IW-Trends

Download PDF

Share this article:

or copy the following link:

The link was added to your clipboard!

German Economic Institute German Economic Institute

The German economy remains on an expansion course, with real gross domestic product expected to grow by over 1 ½ percent in 2017 and by 1 ¾ percent in 2018, the lower number of working days acting as a brake on macroeconomic performance in the current year.

This economic continuity is astounding in view of the high level of political uncertainty. Indeed, the short-term outlook for the global economy is being revised upwards. Despite the political dangers and latent hostility to trade, at a rate of around 3 ½ per cent world production is set to expand more rapidly than in previous years, though global trade is growing at a slightly slower pace. This environment is providing German foreign trade with a perceptible impetus. Overall, the contribution of foreign trade will dampen German growth slightly in 2017 and 2018 and the country’s current account surplus is expected to shrink. The outlook for German corporate investment has again improved considerably, with investment in construction particularly resilient. In 2017 and 2018, a total of 1 million new jobs will be created in Germany and unemployment is expected to fall to an average of just over 5½ percent in 2018. As a result of this ongoing boom in the labour market, private consumption will continue to be the main economic stimulus. Government consumption expenditure also remains strongly expansive, so that private and public sector consumption combined will contribute more than 1 percentage point to growth in each year of the forecast. Price trends will slow the rise in consumption much more clearly than in previous years. With government spending rising more rapidly than revenues, the public sector surplus is expected to fall to around 13 billion euros in 2018.

Download PDF
Successes Not to Be Squandered IW Economic Forecast Spring 2017
IW-Forschungsgruppe Konjunktur IW-Trends No. 2 18. May 2017

Forschungsgruppe Gesamtwirtschaftliche Analysen und Konjunktur: IW-Konjunkturprognose Frühjahr 2017: Arbeitsmarkt trägt Konjunktur – Erfolge nicht verspielen

IW-Trends

Download PDF

German Economic Institute German Economic Institute

Share this article:

or copy the following link:

The link was added to your clipboard!

More on the topic

Read the article
The Productivity Effects of Capital Formation in Germany
Michael Grömling IW-Trends No. 2 9. May 2022

The Productivity Effects of Capital Formation in Germany

Despite broad-based digitalisation, productivity advances in Germany in recent years have been considerably lower than in previous decades. This paper conducts a growth accounting which points to steeply declining stimuli from technical progress and especially ...

IW

Read the article
Jürgen Matthes IW-Policy Paper No. 1 25. February 2022

Stability instead of government overreach

Contrary to what the German government seems to be aiming for, a reform of the Stability and Growth Pact (SGP) is necessary. The debt reduction rule forces highly indebted euro countries to reduce their debt too quickly and too damagingly for growth.

IW

Content element with id 8880 Content element with id 9713