Economists: German economy to grow 1.3 percent next year

Adjust Comment Print

Please click the button below to manage your account. If you would like to discuss another topic, look for a relevant article.

The 19 eurozone countries "should now use the tailwinds of the economic upturn to carry out structural reforms", panel chairman Christoph Schmidt said.

The group's growth prediction compares with government projections of 1.8 percent growth in 2016 and 1.4 percent growth next year.

Among other things, the panel says the European Union should conclude free trade agreements with the U.S.to go alongside its recent one with Canada, and that Germany should conduct tax reforms. And it said "the statutory retirement age should be linked to longer life expectancy" starting in 2030. The increase, which is being introduced gradually and will apply to all retirees by 2029, was unpopular and most German politicians have no appetite for going further.

Comparing the US Federal Reserve's views on jobs and economy
A few key reasons, among them the US election, were believed to be behind the Fed's decision. Most analysts and investors expect a rate hike at the Fed's next meeting in mid-December.

Chancellor Angela Merkel's promise that Germany "will manage" with the EU's largest influx of refugees has led to criticism from her own party, and even to her backtracking on the policy in September. "In terms of media freedom, these are our perceptions and we have informed about this the Turkish government during meetings on different levels", he said. Still, it called for "preventing an exit through constructive negotiations or at least concluding a successor agreement that limits the damage for both sides". Merkel said that she is "optimistic" about the future of the immigration deal, adding that the negotiations "are bound" to be successful. Immigration concerns were a major factor in the Brexit referendum, accounting for roughly half of the "leave" votes in the poll, according to EurActiv.

Any concessions the European Union grants non-member Switzerland will be closely watched for clues of what Britain might expect as it prepares to renegotiate its ties with the bloc following its June 23 referendum vote to leave.

If so, Schneider-Ammann said the upshot "could be that we are compatible with the EU's freedom of movement rules already".

Comments