Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

German economy likely to grow by 2.5 pct in 2018, says Commerzbank

The German economy is expected to grow by 2.5 percent this year after having expanded strongly in 2017 at an expected rate of 2.3 percent. Private consumption is likely to remain the main driver of the economy, benefitting from rising employment and decent wage increases. In addition, the improving investment in machinery and equipment is also expected to widen the upswing, Commerzbank reported.

The upturn in the global economy, favorable financing conditions and, last but not least, increasing capacity bottlenecks mean that companies are once again investing more. Further impetus is likely to come from construction investments, fuelled by the high demand for real estate.

The German economy has grown far more over the past ten years than the average of other eurozone countries, but this situation will come to an end in the longer term. One of the pillars of German success in recent years – its strong price competitiveness – is wobbling. German unit labor costs, for example, has been rising since 2011 more than the average in other eurozone countries.

Meanwhile, Germany has lost attractiveness as a business location in past years. Its distance from a hypothetical top location in the EU has steadily increased. Especially eastern European countries have implemented much more reform. Germany as a business location has slipped to rank 16 out of 28 EU countries.

Lastly, FxWirePro has launched Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

September 21 19:00 UTC Released

USCattle Marketed

Actual

100 %

Forecast

100.4 %

Previous

105 %

September 21 19:00 UTC Released

USCattle Placed On Fd

Actual

107 %

Forecast

104.4 %

Previous

108 %

January 31 00:00 UTC 337157337157m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 337157337157m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 348977348977m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 337157337157m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 348977348977m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 337157337157m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 337157337157m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 337157337157m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.