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German Economy: Slowdown in Sight

DIW Weekly Report 24 / 2018, S. 210-216

Ferdinand Fichtner, Christian Breuer, Simon Junker, Claus Michelsen, Thore Schlaak

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Compared to last year, the German economy is weakening noticeably. Orders from abroad are decreasing and domestic companies are holding back on investments. However, capacity utilization remains high—also because the government will boost the incomes of private households next year. However, above all, incomes are rising noticeably due to the positive situation in the labor market: the unemployment rate will fall to 5.2 percent this year and 4.9 percent next year. All in all, the German economy will grow by 1.9 percent this year and 1.7 percent in 2019.

Topics: Business cycles

JEL-Classification: E32;E66;F01
Keywords: Business cycle forecast, economic outlook
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