According to the German DIHK chambers of commerce, the economy is set to grow even more this and the next year. For 2017, they predict that the economy will grow by 2%, rather than the previous estimate of 1.8%. Furthermore, for next year, it is forecasted to grow by 2.2%. There are many factors influencing this growth, such as, a decrease in unemployment, low borrowing expenses, increase in exports, and consumer spending.
The managing director of DIHK, Martin Wansleben agreed that the significant growth was boosted by the increase in domestic demand and exports. In addition to that, he also said that ‘the economy is firing on all cylinders’. Moreover, he also mentioned that the economy is experiencing an increase in investments, which are contributing to its growth.
Based on a survey done by DIHK in autumn, business morale also increased and it reached record high. It stated that only 6% of the firms said that business is not going good. 43% reported that they were satisfied with the outcome and the majority of 51% said that they are experiencing good conditions.
For future governments, Wansleben has made the following suggestions:
- To lower corporate taxes
- Approve an immigration law to attract more talent to the country
- Encourage public investments in infrastructure