— Recording growth of 2.2% in 2017 (2016: 1.9%), the German economy
expanded for the eighth consecutive year. In calendar-adjusted terms,
growth was up by as much as 2.5%, as there were three fewer working days
than in 2016.
— Robust and broad-based domestic demand remained the key driver. Private
consumption was supported by strong income and employment growth.
Moreover, the recovery of global trade provided a lift to export demand. This
resulted in rising capacity utilisation and hence higher investment in
machinery and equipment.
— For the fourth quarter of 2017, we expect GDP growth of 0.5%. Whilst retail
sales were flat on the previous quarter, industrial production was up sharply
despite a negative “bridge day” effect in October.
— Thanks to the solid underlying dynamics, Germany enjoyed a good start to
2018. This is reflected in industrial order intake, the robust labour market
and in consumer and business sentiment indicators.