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Germany's economic ministry raised GDP forecasts for 2017 and 2018 on Wednesday saying also that robust German domestic consumption will see imports outstripping exports implying Germany will aid European and world growth. That said on balance trade will not contribute to German growth this year or next with the economy on a solid domestic foundation.

Germany Celebration

German Economic Ministry Economic Highlights

  • 2017 GDP 2.0% vs 1.5% April forecast
  • 2018 GDP 1.9% vs 1.6% prev
  • Sees exports 3.5% In 2017, 4% In 2018
  • Sees imports 4.4% In 2017, 4.7% in 2018
  • CPI at 1.8% In 2017, 1.6% in 2018
  • Current account surplus will shrink to 7.4% of GDP in 2018 from 8.3% in 2016

The current account surplus has much to do with the Euro exchange rate, Germany notoriously underforecasts it's trade surplus for obvious reasons.

The International Monetary Fund also raised it's forecast for the German GDP to 2 percent early this week. It is likely the comments from the ministry were responding to calls from the IMF for Germany to benefit the rest of the Eurozone.

Germany’s new government looks to be a coalition of Chancellor Angela Merkel’s center-right Christian Democrats and the pro-business Free Democrats and environmentalist Greens. This would see policy dominated by fiscal conservatives.

From The Traders Community News Desk

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