ifo Economic Forecast 2017–2019: German Economy on Track to Boom

On 14 December 2017 the ifo Institute presented its economic forecast for the years 2017, 2018 and 2019. The upswing seen in the German economy since 2013 has accelerated markedly. The ifo Institute expects real gross domestic product (GDP) to increase by 2.3% this year, followed by a 2.6% upturn in 2018 and 2.1% in 2019. Excessive capacity utilisation will grow clearly over the forecasting period, while wage and price hikes will gain impetus. The German economy is in great shape. This is mainly due to manufacturing, which is clearly benefitting from an improved economic outlook in the euro area and the rest of the world and will clearly ramp up its export and investment activity. Although their contribution will diminish somewhat, private consumption and construction will also continue to grow strongly.