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  3. 13/2017

The German Economy: Employment Boom in Germany, but no Overheating of the Economy

Employment in Germany continues to increase healthily, and private consumption expands due to rising real incomes. Investment in equipment, however, remains modest. Overall, economic demand is expanding at roughly the growth rate of potential Gross Domestic Product (GDP), and the output gap is nearly closed. “In 2017, GDP will increase by 1.3% and thus at a lower rate than in the previous year, but this is only due to fewer working days and not to sliding demand,” says Oliver Holtemoeller, Head of the Department Macroeconomics and IWH vice president.

Authors Oliver Holtemöller

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Keywords

macroeconomic forecast monetary policies financial policy global economy Germany public finances production
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