German economy gained more than two percent in 2017, says BDI

The economy of Germany is expected to increase by more than 2 percent this year, with further adjustments on calendar effect According to the BDI industry association, this could be the strongest rate in six years after increasing its growth outlook for the biggest economy of the European Union.

The forecast comes after a muted message by the Economy Ministry, stating that the country might have slower growth during the second half amid the breakthrough for the first half.

The German economy would likely have an upswing due to consumer-driven factors including the extremely low borrowing costs, high level of employment and increasing real wages. Moreover, these factors may support Chancellor Angela Merkel to gain victory for her fourth term during the federal election on September 24.

The ministry is very careful before publishing any forecast as indicated in its monthly report, stating that the development will continue until December but it is possible that dynamics will weaken.

So far, the growth forecast for this year remains unadjusted at 1.5 percent by which will be revised to 1.8 percent due to calendar-adjusted basis. However, analysts hope that the government will further lift the rate in autumn.