Spring 2017 economic forecast: interview with Ferdinand Fichtner

Mr. Fichtner, will the German economy be able to maintain 2016’s growth momentum over the course of the current year?

Although Germany’s economic growth will be a bit lower in 2017, this is primarily due to the fact that there are fewer workdays this year than there were last year – and not because the economy is running out of steam. Another factor is the recent sharp increase in energy prices and its effect on consumer prices, which will have a negative effect on households’ purchasing power. Private consumption is thus unlikely to create the same strong impulses that it did last year. Overall, we are projecting a GDP growth rate of 1.4% for 2017, which is somewhat less than last year’s rate of 1.9 percent. [...]