Business World

Tuesday 24 October 2017

German business raises growth forecast

Final figures confirm that the German economy grew by 2.2pc in the second quarter this year from the previous three-month period.

The country's national statistics office confirmed its previous estimate for Europe's biggest economy, which also showed an annual growth rate of 4.1pc.

The quarterly growth rate was the strongest since east and west Germany were reunified in late 1990. Growth in Germany contrasts with a loss of momentum in the United States, the world's biggest economy, and a slowdown in number two China.

In October, the federal government is to revise its previous 2010 forecast of 1.4pc growth, officials have indicated.

The German Chamber of Commerce and Industry (DIHK) now expects the country's economy to grow by around 3.4pc this year, its chief Martin Wansleben said yesterday.

"The recovery is expanding,' he told the weekly magazine 'Der Spiegel'.

Businesses are investing again and "even consumption is accelerating thanks to favourable developments in the labour market," he added.

The DIHK forecast is considerably higher than the revised 3pc forecast issued last Thursday by the German central bank, and would see the economy tie the 2006 growth record.

Germany suffered its worst post-war recession last year, but has bounced back with the help of strong foreign demand for its high-quality cars, chemical products and machine tools, and has been helped by a weaker euro.

Irish Independent

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