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German Economy Defying a Turbulent and Uncertain Environment: DIW Economic Outlook

DIW Weekly Report 22/23/24 / 2019, S. 196-199

Claus Michelsen, Martin Bruns, Marius Clemens, Max Hanisch, Simon Junker, Konstantin Kholodilin, Thore Schlaak

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After a turbulent summer, marked by a weak second and a likely stronger third quarter, the German economy should return to an average pace of growth and end up with a growth rate of 0.9 percent in 2019. Despite the more subdued pace, capacity utilization remains high; employment growth is continuing, albeit more slowly; and the trend of foreign demand is weakening but remains buoyant overall. In this economic setting, companies are expanding their investments, yet are likely to act cautiously due to imminent upheavals in global trade.

Konstantin A. Kholodilin

Research Associate in the Macroeconomics Department

Topics: Business cycles

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

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