German Economy Set to Thrive Despite Global Challenges in 2016-2018.
The German economy is expected to keep growing despite challenges from other countries. GDP is forecasted to increase by 1.9% in 2016 and 1.7% in 2017. The impact of Brexit on Germany will be small, while the effects of the US election and Italian referendum are uncertain. Exports are predicted to pick up, but domestic factors like construction and consumer spending will drive growth. Inflation will rise, affecting household income, but business investment is expected to improve. The government budget will stay positive, and the job market will remain strong, with more people employed and lower unemployment rates by 2018.