German Economy Stagnating – Now is the Time To Strengthen Growth

The German economy has cooled down. Gross domestic product (GDP) is expected to grow by 1.3 percent. The 68 percent projection interval ranges from 1.1 percent to 1.5 percent. The weakened world economy and subdued investment activity are acting as the main checks on economic development. World production continued to expand at a moderate pace in autumn 2014. The upturn continued in the USA and Great Britain, but contrary to expectations in the spring, a recovery did not take hold in the euro area. Economic activity is heterogenous in the emerging economies, with China slightly losing pace. Fairly weak world economic expansion was reflected in minimal growth in world trade during the first half of 2014.