The German government has slightly revised downwards the estimates of German GDP growth in 2016. From +1,8% to +1,7%, a correction of 0,1% compared to what was expected last October.
To communicate the news was Economy Minister Sigmar Gabriel, as part of the presentation of the annual report on the economy in Berlin.
“We're fine, but we need to invest more,” Gabriel said as he introduced the presentation. Employment will continue to grow, after +0,8% in 2015, +0,9 is forecast for 2016, while the unemployment rate will remain stable at 6,4%. Indebtedness will also fall below 70% of GDP.
“The situation in Germany is good and destined to stay that way” assured Berlin's Economy Minister Sigmar Gabriel at a press conference, however insisting on the need to invest.
The new growth estimate of the German government thus conforms to that of the IMF, while moving away from the forecasts of the German Federation of Industry Bdi which is aiming for a growth of 1,9% of GDP.
According to the minister, given the current conditions for an exporting country (collapse in oil prices, a weak euro and low interest rates), a level of GDP growth of 1,7% is not "extraordinary" but "averagely good". For the current year, the German government estimates growth of 1,9% in private consumption, in line with the growth for 2015. According to forecasts, exports slow down to 3,2% from 5,4% in 2015 and imports (+4,8%) from +5,7% in the year just ended.
