European Economics

European Economics Focus

3 April, 2018

How will Germany fare under its new Government?

The new German Government plans a fiscal boost equivalent to around 0.4% of GDP per year during its term. Increased spending on child benefits, pensions and refugee integration will support consumer spending growth in particular and we see GDP rising by 2.5% this year and 2.0% next. But the policies are short-sighted and will do little to boost growth over the longer term.

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