The IFO economic institute revised its 2016 German GDP forecasts higher
and stated the private consumption will continue to drive the upswing.
Key Points
2016 GDP forecast raised to +1.9% from the previous forecast of 1.8%
2015 GDP forecast lowered to +1.7% from the previous forecast of +1.9%
Private consumption will continue to drive the upswing, which will be boosted by a renewed drop in oil prices, higher earnings and transfers and a lighter tax and social charges burden on households.
Expansive stimuli from fiscal and social policy will be stronger, not least due to far higher government expenditure on consumption and transfers related to the influx of refugees.
Key Points
2016 GDP forecast raised to +1.9% from the previous forecast of 1.8%
2015 GDP forecast lowered to +1.7% from the previous forecast of +1.9%
Private consumption will continue to drive the upswing, which will be boosted by a renewed drop in oil prices, higher earnings and transfers and a lighter tax and social charges burden on households.
Expansive stimuli from fiscal and social policy will be stronger, not least due to far higher government expenditure on consumption and transfers related to the influx of refugees.
