Germany Economic Outlook
August 27, 2019A flash estimate revealed that the economy contracted in the second quarter of the year. Although a breakdown by components is not yet available, the external sector seems to have been the culprit for the weak showing: Exports shrank in Q2 as sustained trade tensions and lingering Brexit-related uncertainty curbed external demand. Domestically, however, the picture appears to have been somewhat brighter in the quarter. Household consumption rose on a still-tight labor market, while fixed investment seemingly continued to grow despite falling investment in the construction sector. Turning to Q3, manufacturing and services PMI data in July–August points to weakening domestic activity, while available survey-based indicators show that sentiment among businesses and consumers continued sliding. Against this backdrop, pressures have been mounting for the government to relax its fiscal rules, with a fiscal stimulus package reportedly already in the works in the event of a recession.
Germany Economic GrowthGrowth is set to slump this year on softening domestic demand and a flagging external sector. That said, a tight labor market and higher public spending should buttress consumption and, in turn, the overall economy. Risks are tilted to the downside due to ongoing global trade tensions, slowing Chinese growth and Brexit uncertainty. FocusEconomics Consensus Forecast panelists expect the economy to expand 0.7% in 2019, which is unchanged from last month’s forecast, and 1.1% in 2020.
Germany Economy Data
5 years of Germany economic forecasts for more than 30 economic indicators.
Get a sample report showing our regional, country and commodities data and analysis.
|Bond Yield||-0.68||0.41 %||Sep 04|
|Exchange Rate||1.10||0.65 %||Sep 04|
|Stock Market||12,025||-0.41 %||Sep 04|
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
Germany Economic News
September 6, 2019
Industrial production fell 0.6% in month-on-month seasonally- and calendar-adjusted terms in July, compared to a 1.1% contraction in June.
August 28, 2019
Consumer confidence was unchanged in September, as the GfK Consumer Climate index remained stable at 9.7 points.
August 27, 2019
A detailed breakdown of national accounts data saw no revisions to preliminary growth figures.
August 26, 2019
Business sentiment among German firms sank to a near seven-year low in August, with the Ifo business climate index falling to 94.3 points from a revised 95.8 in July (previously reported: 95.7).
Germany: Germany: Composite PMI improves slightly in August but still languishes around six-year lows
August 22, 2019
Leading indicators suggest momentum in the Eurozone’s largest economy remained weak in August, amid divergent dynamics in the services and manufacturing sectors.