Economic: the German economy is weakening at the turn of the year more

The economy is not in the Winter, back to old strength. Still, the mood in the boardrooms of the companies is brightening. As in previous months, has yielded to the purchasing managers ‘ index from Markit also in December. Both in Germany and in the Euro area, the economy is as slow as for the past four years has not grown, reported Economists at the London-based market research Institute on Friday.

For Germany, the climate index fell 0.1 point to 52.2 points. He was, however, still above the 50 percent mark that indicates growth. The deterioration in mood could also be due to the fact that the weakness of the auto industry as a result of the problems in the conversion of exhaust gas measurement (WLTP) could no longer curb the growth, as Economists had previously expected. Also the riots in France, the climate in the Euro area appears to be – the ability of the country to reforms.

Weaker half-year the economy is forecast by the Bundesbank. You expected for 2018 in Germany, only an increase of the gross domestic product of 1.5 per cent. In June, she had said a Plus of 2.0 percent. For next year, it lowered the growth forecast from 1.9% to 1.6%, 2020 also anticipates 1.6 percent growth.

other industrial countries, weaken

“The German economy remains on a solid growth course”, writes the Bundesbank. Unlike the economy, researchers from the Ifo Institute in Munich, the Economists, the guardian of the currency, the German economy is still in the boom. Special factors, such as the flu wave in the spring, strikes and troubles in the auto industry in the summer to change that. The unfavourable demographic development. “On the supply side, limits the further increase in employment, and thereby contributes to increasing bottlenecks in the labour market, on the demand side, it dampens the demand for housing and the Investment activity of the companies”, explained Bundesbank President Jens Weidmann.