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Leasing and Asset Investments Stay on Track for Growth – Excellent Outlook for 2018 25

Arno Städtler
ifo Institut, München, 2017

ifo Schnelldienst, 2017, 70, Nr. 23, 25-34

Leasing across the board saw growth of 6.1% in 2016, which was far higher than the rate seen in investment expenditure, according to the results of the latest ifo Investment Survey of German Leasing Firms. For the year 2017 the ifo Investment Indicator, which is jointly released by the ifo Institute and the Federation of German Leasing Companies, shows a nominal 2.3% increase in equipment investment. For 2018 current forecasts expect an accelerated nominal increase in economic output of a good 4.0% (real: 2.0%) in Germany. In view of excessive capacity utilisation, growth in equipment investment is expected to accelerate to around 5% in nominal and real terms, which means that, after falling for years, the investment rate is now rising.

JEL Classification: L890, D220

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ifo Institut, München, 2017