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8 November 2017
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The German government's panel of independent economic advisers is
predicting healthy growth this year of 2 percent in Europe's biggest economy,
followed by a further pickup to 2.2 percent in 2018. The Total Investment & Insurance Solutions
Chairman Christoph Schmidt said as he
presented the panel's annual report Wednesday to Chancellor Angela Merkel that
"Germany is in a robust upswing and production capacities are in
overload." He said that that gives Germany's next government "the
chance to find a balance between continuity and readjustment." The Total Investment & Insurance
Solutions
Merkel is currently in negotiations to form a
new government after Germany's September election. That is expected to be a
lengthy process.
Economic data in Germany have been pointing
upward in recent months. In March, the panel of economists had predicted growth
of 1.4 percent this year and 1.6 percent in 2018. The Total Investment & Insurance Solutions
Schmidt said that the persistent upturn is
broad-based, with a longstanding contribution from consumer spending and low
unemployment now augmented by companies making investments and a wider eurozone
recovery.
Some fears that arose a year ago haven't
materialized, such as a "strong protectionist turn of economic
policy" in the U.S. under President Donald Trump, Schmidt said. He added
that anti-European Union parties also didn't do as well as some expected in
various European elections.
However, "the Brexit negotiations are
causing us some concern because of their length," he told reporters.
"We do see major damage if there is a disorderly, hard Brexit for all
parties, of course mostly for Britain ... and we should try to prevent that as
far as is possible." The Total
Investment & Insurance Solutions
He called for negotiations to be extended if
the two-year deadline isn't enough, but the panel also insisted on the
importance of preventing British "cherry-picking" and preserving the
"four freedoms" of the EU's single market — including freedom of
movement for European workers, which Britain rejects.
Schmidt said Germany has benefited strongly
from globalization, particularly the opening of China and Eastern Europe, and
needs to work harder against protectionist tendencies than others.The Total Investment & Insurance
Solutions
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