Joint Economic Forecast Spring 2018

German Economy Booming – But Air is Getting Thinner

The German economy continues to boom, but the air is getting thinner. The upturn in the world economy will continue to stimulate exports; and the domestic economy is also expected to remain buoyant thanks to the exceptionally favorable situation in the labor market. The fiscal measures outlined by Germany’s new government can be expected to stimulate demand. Annual average economic output can be expected to rise by 2.2 percent this year and by 2.0 percent in 2019. Employment will continue to see clear growth, but will be weakened by labor market shortages. The inflation rate will also rise gradually from 1.7 percent this year to 1.9 percent in 2019.
Press information of April 19, 2018 (pdf)