Germany - Not Out Of Steam, But Past The Peak

Published 12/11/2018, 02:23 AM

German growth has peaked amid rising external headwinds, but we still expect continued growth above potential at 1.7% in 2019 and 1.6% in 2020.

We expect domestic demand to drive the ongoing expansion, not least due to higher public spending, while net exports will increasingly become a headwind to growth.

Risks to the growth outlook for the export-dependent German economy stem mainly from the external side amid protectionist tendencies in the US.

The tight labour market has started to spill over to higher negotiated wages, leading us to expect the acceleration in core inflation to continue.

To read the entire report Please click on the pdf File Below..

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