KfW Business Cycle Compass November 2018
Germany’s economy: not more than potential growth, with many downward risks
Third-quarter GDP growth was disappointing, particularly as a result of the WLTP problems in the automotive industry. Even with a strong rebound at the end of the year, Germany’s economy will now grow by only 1.6 % in 2018 (previous forecast 1.8 %). KfW Research still expects real growth of 1.6 % for 2019. Germany is thus set to continue growing roughly at the rate of its production potential this year and next. This is actually positive for the chances of Germany’s already long-standing upswing continuing. Still, the downward risks are substantial.
KfW Business Cycle Compass Germany November 2018 (PDF, 185 KB, non-accessible)
