German Economy in 2017: Stable, but not staid
The signs for Germany’s further economic development are promising, with a high level of stability.
Coface’s expectations for solid growth therefore come as little surprise. This year’s gross domestic product (GDP) is expected to grow by 1.8%. Growth for next year, at 1.7%, will only be marginally smaller. The primary growth driver for 2017 will once again be private consumption, mainly fuelled by the country’s record-high levels of employment.
Risks for the German economy could occur on the export side. Global trade is only expected to show moderate growth in 2017 and specific risks are lurking in some of the major target countries for German exports – such as the forthcoming Brexit and the cooling down of the Chinese and US economies. Moreover, the economic impacts from the election of Donald Trump as US president Trump are, as yet, unclear. German exports will only grow by 2.3% in 2016 and 3.4% next year.