The German economy is expected to maintain a strong growth momentum over the forecast horizon driven by domestic demand and supported by robust world trade and a firming recovery in the euro area. The strength of the labour market means that real wages should continue rising, making for brisk private consumption growth. Improved demand prospects and high capacity utilisation are set to boost business investment. Housing investment may rise further but at a slower pace. Strong domestic demand should further narrow the current account surplus while robust growth would support an upward trend in the budget balance and help lower the government debt ratio.

Indicators 2016 2017 2018 2019
GDP growth (%, yoy) 1,9 2,2 2,1 2,0
Inflation (%, yoy) 0,4 1,7 1,5 1,6
Unemployment (%) 4,1 3,7 3,5 3,2
Public budget balance (% of GDP) 0,8 0,9 1,0 1,1
Gross public debt (% of GDP) 68,1 64,8 61,2 57,9
Current account balance (% of GDP) 8,5 7,8 7,5 7,2

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