trending Market Intelligence /marketintelligence/en/news-insights/trending/gasc3lmxbgk1xd7jnii80w2 content esgSubNav
In This List

Think tank ifo raises German GDP growth forecast on strong private consumption

Blog

Banking Essentials Newsletter: 7th February Edition

Blog

Insurance Underwriting Transformed How Insurers Can Harness Probability of Default Models for Smarter Credit Decisions

Case Study

A Bank Outsources Data Gathering to Meet Basel III Regulations

Podcast

Private Markets 360° | Episode 8: Powering the Global Private Markets (with Adam Kansler of S&P Global Market Intelligence)


Think tank ifo raises German GDP growth forecast on strong private consumption

The ifo Institute raised its growth forecast for Germany, citing a strong economy driven by private consumption.

GDP is now expected to grow 1.9% in 2018 and 2019, compared with a previous projection of 1.8% for both years. For 2020, the German economy is estimated to grow 1.7%.

"Germany's economy is currently performing strongly. Its main drivers this year and next will be private consumption, which will be boosted by rising employment and sharp increases in income," said Timo Wollmershäuser, head of business cycle research and forecasting at ifo.

A better-than-expected quarterly expansion of 0.5% was recorded in the second quarter, compared with 0.4% growth in the prior quarter, data from Germany's Federal Statistical Office showed in August.

On the trade front, Germany's export sector is seen continuing to benefit from a "favorable" world economic climate, Wollmershäuser said, adding, "[T]his effect will fade gradually over the forecasting period."

"This forecast is based on the assumption that the truce reached in the trade war between the EU and the USA will last; and that there will be an orderly Brexit," Wollmershäuser said.