Transcription of GERMANY - OECD.org
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GERMANY - OECD.org
3. DEVELOPMENTS IN INDIVIDUAL OECD AND SELECTED NON-MEMBER ECONOMIESOECD ECONOMIC OUTLOOK, volume 2018 ISSUE1 PRELIMINARY VERSION OECD 2018146 GERMANYE conomic growth is projected to remain solid, backed by robust world trade,investment and a booming labour market. Consumption growth has slowed somewhat,as higher inflation has curbed real wage growth. Low interest rates, high capacityutilisation and growing housing demand are supporting strong residential and businessinvestment. The current account surplus is projected to fall somewhat on the back ofstrong domestic demand that fuels policy is mildly expansionary, but strong cyclical revenue growth will keep thebudget balance in surplus. Reductions in social security contributions and highersubsidies for families are expected, although their timing remains uncertain. Fiscalspace is available to increase spending on education, broadband and low-emissiontransport infrastructure, all of which would strengthen productivity in the long run.
3. developments in individual oecd and selected non-member economies oecd economic outlook,volume 2018 issue1–preliminary version © oecd 2018 147 germany: demand ...
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