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New Government’s Policies Give the Thriving German Economy an Additional Boost

DIW Weekly Report 10/11 / 2018, S. 102-105

Ferdinand Fichtner, Karl Brenke, Christian Breuer, Marius Clemens, Simon Junker, Claus Michelsen, Thore Schlaak

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The German economy will grow by 2.4 percent this year, especially due to strong foreign demand. Brisk investment activity continues in this economic climate; stimulus from foreign trade, however, is weakening somewhat. Despite strong consumer demand in the coming quarters, employment and economic output growth are losing momentum. However, stimulus measures from the new federal government will increase income and thus private households’ consumption. With 1.9 percent growth in 2019, overall economic capacity will remain well utilized.

Topics: Business cycles

JEL-Classification: E32;E66;F01
Keywords: Business cycle forecast, economic outlook
Frei zugängliche Version: (econstor)