German economy likely to expand 2.3 pct in 2017, private consumption to drive growth - Commerzbank

Germany’s economy is in a robust upswing. The economic growth accelerated 0.8 percent in the third quarter on a sequential basis, as compared with the growth of 0.9 percent and 0.6 percent in the first and second quarter, respectively.

With the high confidence indicators, the German economy should grow markedly in the second half, even if euro strength dampens exports to a slightly greater degree. Private consumption is expected to still mainly drive the economic growth, noted Commerzbank in a research report. This is benefitting from the rising employment and strong wage growth. Additional impetus is expected to come from building investment, stimulated by high property demand.

Equipment investment is also expected to gradually overcome the dull period. The rebounding global economy, favorable financing conditions and the rising capacity bottlenecks facing business should urge firms to invest more again.

“We expect a growth rate of 2.3 percent in 2017 and 2.0 percent in 2018”, added Commerzbank.

At 19:00 GMT the FxWirePro's Hourly Strength Index of Euro was highly bearish at -107.156, while the FxWirePro's Hourly Strength Index of US Dollar was bullish at 88.7338. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex

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