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German economy will pick up speed only slowly
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Germany's Most Attractive Employers - Trends and Rankings
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Find a copy in the library Finding libraries that hold this item For Europe, the unresolved Brexit negotiations put further strain on the economy. Although low interest rates and expansionary fiscal policies support the economy in the euro area, a sizeable pickup of the economy is likely to depend on further external stimulus, which might come when expansionary policy measures in China take effect in mid In Germany, aggregate output stagnated in the final quarter of , following a decline by 0.
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Problems of car producers adapting to a new emission gas test procedure, as well as the months-long failure of the Rhine as a waterway for the chemical industry, contributed to this weakness. More importantly, foreign demand, especially from the EU partner countries, has slowed down significantly.
On the other hand, construction activity stays strong and companies continue building up employment, even, despite a decline in production, in the manufacturing sector.
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As a consequence, firms will not raise employment as fast as they did in Still, private consumption is likely to expand robustly, not least because real wages continue rising. In addition, low interest rates and discretionary fiscal policies, which will amount to 0. Real gross domestic product will be 0.
In , the growth rate will increase to 2. The East German economy expands by 0.
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