Experts: German economy to stay on growth course, but risks present

Growth in the economy this year has been increased from 2 to 2.2 per cent, according to a spring report by the leading institutes presented in Berlin on Thursday.

Growth in 2019 has been increased from 1.8 to 2 per cent.

German exports have increased on the back of an uptick in the world economy, while private consumption has remained strong.

Despite the positive note, the report also pointed to risks.

“The macroeconomic capacities that are still available are gradually becoming tighter,” said Timo Wollmershaeuser, senior economist at the German Institute for Economic Research (ifo) think tank. He said the air was getting “thinner.”

There is already a high degree of capacity utilization in companies, he said, adding that it had grown recently.

Companies are facing increasing difficulties in hiring skilled workers, according to the report.

The ongoing trade conflict with the United States poses a further risk to the German economy.

Source: dpa