Unemployment in Germany has fallen to 6.6%, a record low, with November’s figures showing a faster-than-expected fall in the number of those out of work.
Domestic demand is doing much of the heavy lifting as many Germans are enjoying rising wages and low interest rates, and the robust labour market is in stark contrast to many EU partners.
Very low inflation is also boosting confidence, although uncertainties remain about the German economy’s exposure to Russia should the effect of sanctions on Moscow worsen. After narrowly avoiding recession in Q3, the final quarter is expected to be better.
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