The spring round of German economic forecasts is over, and they point to the same projections across the board: Employment will continue to increase but at a reduced rate.
Domestic demand will dominate the economy, while net exports weaken slightly. And the German national budget will remain in the black despite additional burdens resulting from refugee policies.
All this will result in economic growth of 1.5 percent this year and 1.25 percent the next.
That’s not all that great, considering the boost resulting from low energy and raw material prices, as well as the European Central Bank’s ultra-expansive fiscal policies.
But it’s not all that bad either, considering the duration of this upswing. At any rate, without a clear direction for years, the economy is on a roller-coaster ride.