Michael Hüther, (IW) German Economy’s Director told the German news agency DPA, “We are going to experience a third year in which we will neither experience a dynamic acceleration nor a considerable slowdown in growth.”
For 2017, Germany’s economy has a positive forecast. Although there is no exceptional economic growth predicted, the economy will be stable and constant. German business groups compared next year’s economy to a ‘tanker’ cruising in calm waters at a constant speed.
According to a survey by the Institute for the German Economy, the key driver of the German GDP will be private consumption. Most of Germany’s businesses associations said that in the companies they represent, if any, there will be only a minor increase in growth. Furthermore, the IW carried out a poll of 48 business lobby groups. According to the IW, only three groups said that there is potential for their growth to increase, whilst another twenty-eight of them said that they expect a stable yet moderate growth. On the downside, eight of them expect a decrease in growth for 2017.