Federal government is expected in 2016, more growth – SPIEGEL ONLINE

The German economy defying a weakening of the global economy: The Federal government raised its growth forecast for this year slightly. For 2017, the prospects are worse.

Friday, 07.10.2016 13:52 PM

The Federal government expects for the current year economic growth of 1.8 percent. They increased their previous forecast by 0.1 percentage points. The forecast for 2017 has been reduced from 1.5 to 1.4 percent. In 2018 it is expected to be 1.6 percent.

“the upturn in The German economy is solid,” said economy Minister Sigmar Gabriel (SPD). You say in a very difficult environment. The global economy is not over around. “Add to this the consequences of Brexit-a decision that is not in many areas yet in sight. The imponderables are increased.”

in Spite of the weakening of the global economy is to develop the labour market positively. In 2018 there is to be 44.3 million workers. That would be 1.3 million more than 2015. The number of unemployed to decline to about 160,000 to 2.63 million. “Against the Background of immigration, this is by no means a matter of course,” Gabriel said.

in view of this development, the government expects that the private consumption remains a pillar of the recovery. However, exports are expected to grow by 2018, more slowly than imports. “The weak development of the world economy is not an ideal environment for investment in the export-oriented companies in Germany,” said the Ministry of economy. Only in the next year, companies are likely to invest significantly more money in machinery and other equipment.

As the basis for the Government’s forecast in the autumn report of the leading research institutes is used. This is expected in 2016, with a growth of 1.9 percent, which is expected to slow by 2017 to 1.4 percent. The forecasts of the Federal government serve, in turn, to the working group “tax estimation” as the Basis for its calculations. The Federal government, Länder, municipalities and social security funds are guided in the preparation of their budgets.

asa/Reuters/AFP

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