QI-2018 QUARTERLY REPORT GERMANY
Economic momentum continues Rosy prospects for 2018
The German economy continued its upward trend through late 2017. In the fourth quarter, impetus for growth came almost exclusively from foreign trading. Rising investment in plants and equipment was cancelled out by the drop in construction investment. State consumption expenditure increased strongly, while private consumption barely moved.
Economic output increased in 2017 overall by a total of 2.2 percent. This was the highest growth seen in six years.
Domestic factors are set to dominate economic development in Germany in 2018. The continuing increase in employment and wages above the inflation rate should help boost private purchasing power and consumption. The high utilisation rate and global economic upturn should increasingly trigger not just replacement but also expansion investment.
For 2018, we expect a year-on-year real increase in overall economic output of 2 ¼ percent. Calendar adjustments will not be necessary this year.