GiNN-BerlinKontor.—The Kiel Institute for the World Economy: German Economy Remains on Track – The German economy will continue to perform well.
. Predictions for GDP growth in Germany: + 2 percent in 2016, + 2.2 percent in 2017
. Weakness in foreign markets is dampening exports, but general economic situation remains positive
. Consumer spending continues to drive growth, with investment also increasing
. No boost for German economy from recent oil price decline
. Slowdown in euro area recovery, border controls have very limited impact
. Subdued outlook for world economy
Despite to economic headwinds, researchers at the Kiel Institute for the World Economy (IfW) have revised their forecasts only slightly downward for the period leading up to 2017. Individual factors include weakness in China, plunging oil prices, wrangling between EU partners over the refugee crisis, and concerns about the strength of the global economy. The researchers now expect Germany to achieve gross domestic product (GDP) growth of 2 percent in 2016 (previously 2.2 percent) and 2.2 percent in 2017 (2.3 percent). The significant decline in exports over the winter due to weakness in foreign markets is the main reason for this downgrade. Nonetheless, the German economy will continue to perform well. (Source: ifw-kiel.de)