In his statement, Ifo President Clemens Fuest said that, “All of the signs indicate that the fourth quarter of 2016 will be stronger than previously anticipated, and that this dynamic will continue into the New Year.”

Unlike the forecasts in Autumn, Germany’s economy which is also the largest euro area economy expects gross domestic product to increase by 1.5% in 2017.  Furthermore, in 2018, there will be a 1.7% growth instead of the prediction of a 1.6% growth.

On the other hand, the institute said that the unemployment rate of 6.1% will remain constant for the following three years at 2.7 million, despite the arrival of refuges within the labour market.