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Germany

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Germany

Country Report; March 2014

EIU,

5 min read
5 take-aways
Audio & text

What's inside?

A glance at the future of the German economy reveals both good and bad potential outcomes.

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Editorial Rating

7

Qualities

  • Analytical
  • Scientific
  • Visionary

Recommendation

The Economist Intelligence Unit forecasts mostly steady growth and stability in Germany’s 2014-2018 economy. Increasing exports, low inflation, a rising GDP and small budget surpluses should prevail. Yet uncertainties about potential euro-zone financial obligations and the actions of the prowling Russian bear cast a shadow on this prediction of prosperity. getAbstract recommends this succinct report’s straightforward tables and charts to observers of – and participants within – the German and euro-zone economies.

Summary

The German economy should move ahead under the country’s “grand coalition” of center-left and center-right parties formed in late 2013. Policy will tilt slightly left, as reflected in moves to establish a minimum wage and increase spending on social services and infrastructure. Chancellor Angela Merkel’s government augurs stability but could face a challenge if opposition parties coalesce. Policy makers will focus on three goals: 1) “ensure a sustainable medium-term budget surplus,” 2) “restore the financial sector to health,” and 3) execute Germany’s “energy revolution” to substitute natural...

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The Economist Intelligence Unit is an independent research and analysis organization.

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