DIW Institute Stays Optimistic About German GDP Growth in 2018

Forex News

The experts of the German Institute for Economic Research (DIW) have raised their forecast for economic growth in Germany in 2018. It is expected, that the German economy, which is the strongest in the Eurozone, will grow by 2.4% this year. DIW also raised its forecast for growth in 2019 to 1.9%.

The new DIW forecast coincides with the expectations of the German government regarding the country's GDP growth in 2018. Analysts also said that since the country's economy is export-oriented, trade barriers are the main risk for Germany's economic growth.

According to forecasts, which were published earlier, Germany's economy may grow by 0.9% in the first quarter of this year. If the forecast comes true, it will be the fastest quarterly growth in the last seven years.

Today's economic data showed that the growth of the consumer price index in Germany fell in February. The final data of the statistical office Destatis showed that the consumer price index rose by 1.4% in February year-on-year after growth of 1.6% in January. This was the third decline in a row and the lowest since November 2016. On a monthly basis, consumer prices rose by 0.5% in February after a decrease of 0.7% in January.