Tuesday, December 27, 2016

Economic associations are expecting more modest growth – FAZ – Frankfurter Allgemeine Zeitung

Berlin (dpa) – German business federations expect for the year 2017 with a rather weak economy plus. 28 of 48 by the Institute of German economy Cologne (IW) of the respondents associations, although a production increase, however, only three expect a significant increase.

Eight of the associations are expecting a worse result, as the employer told close to IW. Also, employment is expected to change only slightly. Private consumption will remain from the point of view of IW as a pillar of the Economy in Germany is stable and not due to fears of Terrorism or any similar uncertainties will be stalled.

“The German economy moves like a Tanker,” said IW Director Michael Hüther of the German press Agency. “This is the third year in a row, in the basically, not a huge momentum gain is added, but also not great, something is lost.” Private consumption depends to a considerable extent from the work risk. But also in the next year, the expansion of Employment, real wages had come “well,” said Hüther. Therefore, the conditions for a stable and strong private consumption are given – he does not believe that the “will challenged by uncertainty arguments, Terror, and similar things” out of the question.

According to the IW survey, especially the construction industry and related industries for 2017 are confident. A downward trend, among other things, the car feared the automotive industry and the financial sector. Great world-economic impulses are not recognize according to the assessment of the IW. With a view to the course of the future U.S. President of the IW,-the expert said, it is just an uncertainty, “because nobody can know exactly what Donald Trump and his Administration really do and with what economic reason, it will be”.

We must start from the point of view of IW experts that Trump the meaning quite seriously mean what he had said: “that he will move from words to deeds, to operate a single signal policy.” On the other hand, no longer applicable, that the offer of the German industry in the mechanical and plant engineering, in the USA, alternatively: “in this respect, it is not so that you can save American jobs, if German products out there.”

To the development in China, said huether, was accustomed to be that there is no longer a double-digit growth rates are expected, but a Plus of 5 to 6 percent. “The German economy is continuing to make good business, but here is a little bit of care,” said Hüther: “The Export to China, but also Investing in China no longer works of course. Because the economic model is a bit on the test.”

On the German labour market there are likely to be reported to be little change in the overall: 20 associations expected in 2017, with a constant employment, 15 expected a growth in Personnel, 12 reduction. In addition to construction-related industries, many service providers wanted to hire employees. On the other hand, the financial and insurance industry will emphasize more.

Despite the General uncertainty, at least 18 of the 48 associations from the IW according to the assumption that the companies in their sector to invest in the coming year, more than in 2016 – especially in the service sector. The digitalization will, in many sectors is becoming increasingly important. The companies need to rush to Invest. Only the chemical industry, the manufacture of aircraft and spacecraft, as well as the processing of plastics will go back to the IW according to your investment.


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