The German Economy Benefits from Strong Domestic Demand

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IWH Press Release 22/2016, 9 June 2016

In 2016, the moderate upswing of the German economy continues. Incomes grow due to the steady expansion in employment, and the fall in energy prices has propped up the purchasing power of private households. As a consequence, private consumption expands healthi­ly; investment in housing is additionally stimulated by very low interest rates. Exports, however, expand only moderately, as the world economy is rather weak. All in all, the IWH forecasts the German GDP to expand by 1.8% in this year and by 1.6% in 2017.

Press release (including key economic indicators): pdf

Full article (in German): pdf