Economy Picking Up – Put Budget Surpluses To Good Use

On 17 October 2013 the economic institutes of the Joint Economic Forecast Project Group presented their autumn forecast to the press in Berlin. The institutes believe that the German economy is on the verge of a recovery driven by domestic demand. The improving global economic climate and decreasing uncertainty are fuelling investment. Private consumption is benefitting from favourable employment and income prospects. Real gross domestic product looks set to grow by 1.8 percent in 2014, after an increase of just 0.4 percent this year. Consumer prices are expected to rise by a moderate 1.6 percent this year and by 1.9 percent next year. The German public budget will continue to show a surplus.