Germany Economic Outlook
April 30, 2018Signs are emerging that last year’s strong economic momentum waned somewhat in the first quarter of this year. Industrial production weakened in February due to a sizable contraction in manufacturing output, following a disappointing start to the year. Meanwhile, business confidence continued to moderate on the back of less favorable business expectations. On a more positive note, the composite PMI increased slightly in April on the back of improvements in the services sector, and consumer confidence remained elevated throughout the first quarter. Consumer sentiment is underpinned by record low levels of unemployment, reinforcing private consumption; annual growth in retail sales is expected to have picked up pace in the first quarter. A moderation in economic activity is therefore expected to be temporary.
Germany Economic GrowthBoth private expenditure and government expenditure are expected to remain resilient this year on the back of the government’s proposed fiscal stimulus package. Household consumption should further benefit from strong wage increases, as evidenced by recent wage settlements in the industrial and private sector. Furthermore, fixed investment and external demand should pick up, although downside risks to external demand remain present; the strong euro and rising protectionism in the U.S. and a possible escalation of trade tensions between the U.S. and China could affect export growth. Analysts see GDP expanding 2.4% in 2018, unchanged from last month’s estimate, and 2.0% in 2019.
Germany Economy Data
5 years of Germany economic forecasts for more than 30 economic indicators.
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|Bond Yield||0.52||0.41 %||May 21|
|Exchange Rate||1.18||0.65 %||May 21|
|Stock Market||13,078||-0.41 %||May 18|
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Germany Economic News
May 25, 2018
Following a series of weaker-than-expected data in the year to date, sentiment data for the private sector in May provided some respite.
May 24, 2018
A detailed breakdown of economic growth released on 24 May by Destatis confirmed the preliminary estimates that showed momentum in the German activity moderated significantly in the first quarter of the year.
Germany: Private sector activity growth continues to ease in May, with the PMI hitting a 20-month low
May 23, 2018
Two months into the second quarter, data suggests that economic momentum remains mild.
May 16, 2018
The consumer price index was unchanged in April from the previous month, contrasting the March’s 0.4% month-on-month increase in prices, data released by the Federal Statistics Office (Destatis) on 16 May showed.
May 15, 2018
Preliminary data released by the Federal Statistics Office (Destatis) on 15 May showed that the German economy lost considerable steam in the first quarter of this year.