The German economic growth is predicted to gather pace in 2018 on the back of record-high employment, wage growth and low borrowing costs, among other factors, Reuters reported, citing a survey by the Association of German Chambers of Commerce and Industry, or DIHK.
The Berlin-based institution said that it expects growth of 2.7% in 2018, up from a previous projection of 2.2%. A pickup in exports and company investments has also contributed to the upturn. The country's economy grew 2.2% in 2017.
According to the survey of 26,000 managers, economic sentiment reached a record high as 54% of firms reported good conditions for their business, 40% of respondents said conditions were satisfactory, and the remaining said things were bad.
"Companies have never been more upbeat," DIHK said.
Shortages of skilled workers and rising labor costs were reportedly pointed out by most companies as the biggest threat for future growth. Companies were largely indifferent to the recent strength of the euro, with only 13% of respondents citing it as a risk for future growth, down 18% in DIHK's autumn survey.
The German government expects the country to grow by 2.4% in 2018, Reuters reported.
German Chancellor Angela Merkel's conservatives and the Social Democrats are understood to have reached a coalition deal.
