01 Jul Boersian with economic confidence – “Euro strength no killer”
Stock market professionals believe that the German economy will continue to grow vigorously in the new year despite the difficult formation of a government.
The barometer for their economic expectations in the next six months rose surprisingly strong in January by 3.0 to 20.4 points, as the Mannheim Center for European Economic Research (ZEW) announced on Tuesday to its monthly survey of 212 analysts and investors. This is the best value since May 2017. Economists interviewed by Reuters had only expected 17.8 points. The current situation is even rated as never before since the survey began in 1991, even though Germany is still without a new government four months after the election.
“The current survey results show an optimistic outlook for Germany for the first half of 2018,” said ZEW President Achim Wambach. “Last year’s most important growth driver, private consumption, is expected to boost growth in the next six months, according to respondents.” The global economic environment in Europe and the US is also assessed better than at the end of 2017.
“The economic situation is excellent,” said the chief economist of Liechenstein VP Bank, Thomas Gitzel. “Even the strong Euro does not turn into a mood killer.” Since the beginning of the year, the single currency has risen by two percent, which makes German goods more expensive overseas. Nevertheless, the German Chamber of Commerce and Industry (DIHK) expects much stronger growth in exports due to the improving global economy. They are likely to grow this year by “at least six percent,” said DIHK foreign trade chief Volker Treier to Reuters news agency. In the fall, only 4.5 percent of the speech. If, as now predicted, exports would increase more sharply than the average of 5.3 percent over the past 25 years.
The German economy grew by 2.2 percent in 2017, the eighth year in a row. For this year, Reuters interviewed economists predict even 2.4 percent.