The Federal government expects for the next year with continued economic growth. “The solid recovery of the German economy is continuing and is now in its tenth year,” it says, according to SPIEGEL information in the draft of the annual economic report for 2019. The Federal government will publish the report at the end of January. The robust development on the labour market further, “so that is to be expected for the year 2019, a new record level of Employment”.
As a result, private income would continue to grow. “In the face of rising wages and employment in the domestic economy, the most important pillar of the economy remains,” write the experts of Federal Minister Peter Altmaier (CDU). In addition, the “slightly expansionary fiscal policy”, i.e., increasing government spending in driving the economy.
Still, the low interest rates of the European Central Bank’s stimulus set, in particular in the construction industry. “Overall, the German economy develops remains positive, although global economic risks have increased in the Wake of the trade of political tensions.”
The economic experts of the Federal government are not however quite as optimistic as in the autumn. There is much to suggest that you revise your growth forecast for next year from 1.8 percent in the direction of 1.5 percent, maybe even less. The exact number will only be determined shortly before the publication of the annual economic report.
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