Economic forecast
RWI expects economic growth of 0.6 percent next year
The Essen economic researchers are more optimistic than some of their colleagues. However, they also fear rising unemployment.
The RWI – Leibniz Institute for Economic Research has revised its economic forecasts downwards. It expects economic output to decline by 0.2 percent this year and growth of 0.6 percent next year. RWI economics director Torsten Schmidt says: “In order for the German economy to grow again next year, it needs above all more economic and overall political security. Companies would benefit from this, as would private consumption.”
The German economy continued to lose ground in the summer half of the year. Exports lag behind world trade. Investments continue to fall. There was a lack of orders, particularly in the automotive industry and in energy-intensive industries. “The economic weakness is likely to last until the spring of next year. Only when it becomes clearer how the economic policy course will be set on both sides of the Atlantic after new elections in Germany and the new US president takes office will uncertainty be reduced and demand stronger rise,” write the Essen economic researchers.
According to their forecast, the unemployment rate is expected to rise from 6.0 percent to 6.1 percent this year. The weak demand for German goods means that no increase in employment can be expected for the time being. The RWI expects the inflation rate to be 2.2 percent.
dpa
Source: Stern
