KfW Business Cycle Compass Germany November 2016

KfW Research confirms its growth forecast of +1.8 % for 2016 and +1.3 % for 2017. Around two thirds of the slowdown next year will be caused by variations in the number of working days alone. The underlying economic momentum will at least match the potential rate in 2017 as well, so Germany will stay on a good path. After the Brexit and the US elections, next year countries in core Europe will hold important elections that may also reveal a growing preference for isolationism and protectionism. As the outcomes are still completely unclear, the outlook for 2017 resembles a voyage into an area of dense fog where the ship can easily drift off course.

Outlook for 2017: German economy is on course but sailing into very foggy waters(PDF, 59 KB, non-accessible)