Humming German economy to grow by 2.6 percent in 2018 - Ifo

Humming German economy to grow by 2.6 percent in 2018 - Ifo
FILE PHOTO: A construction site at the river Spree is pictured in Berlin, Germany, November 27, 2017. REUTERS/Hannibal Hanschke/File Photo
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BERLIN (Reuters) – The Ifo institute raised next year’s growth forecast for the German economy to 2.6 percent from 2.0 percent previously, pointing to a broad-based upswing that is generating record-high employment and buoyant tax revenues.

“The German economy is humming,” Ifo head Clemens Fuest said on Thursday, adding that the strong economic upswing would extend far into 2018.

“Many sectors are flourishing, from construction to manufacturing and trade, which is why the Ifo business climate index is climbing from one record-high to the next,” Ifo economist Timo Wollmershaeuser said.

The Ifo institute confirmed its recently raised forecast for German economic growth of 2.3 percent for this year, unadjusted for calendar effects.

“If the number of working days were not so low, we would even have a growth rate of 2.5 percent this year,” Wollmershaeuser said.

For 2019, Ifo predicts growth of 2.1 percent.

(Reporting by Michael Nienaber; Editing by Madeline Chambers)

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