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Germany

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Germany

Country Report; March 2014

EIU,

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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...

About the Author

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

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