German Economy to Gain Additional Momentum in 2016
January 25, 2016 | IHSEstimated reading time: 3 minutes
The German economy is forecast to beat government growth expectations in 2016, according to new analysis from IHS Inc. (NYSE:IHS), the leading global source of critical information and insight.
Headline growth in real gross domestic product (GDP) is expected to be 2.1 percent this year, up from 1.7 percent in 2015, exceeding the German government’s official forecast of 1.8 percent. Accelerating growth is expected despite the restraining impact of weakness or outright recessions in a number of emerging markets because German domestic demand is likely to be firing on all cylinders in 2016.
Exports will be more resilient than generally expected
“Although the economic slowdown in China and recessions in large emerging markets such as Russia and Brazil will certainly leave their mark on global trade in general and German exports in particular, there are offsetting factors,” said Timo Klein, IHS Global Insight economist. “Among these factors are healthier U.S. and U.K. economies and a gradually strengthening Eurozone that is recovering from the debt crisis that dominated developments during the first half of the decade. Two-thirds of German exports go to either other EU countries or the U.S.”
Furthermore, the fairly weak stance of the euro, which is closely linked to an extremely soft monetary policy from the European Central Bank (ECB), is expected to enable German exporters to gain market share in trade with non-Eurozone countries.
Nevertheless, growth in imports is seen to outperform that in exports, leading to a modest negative contribution of net exports to GDP growth. Import strength reflects the expected robustness of domestic demand, which will also boost purchases of goods from abroad.
Page 1 of 3
Suggested Items
SPEA Expands in Southeast Asia with New Subsidiary in Thailand
05/17/2024 | SPEASPEA, a global leader in automatic test equipment for the manufacturing of semiconductor, microelectronic and electronic devices, today announced the opening of its new subsidiary in Thailand. This expansion marks a significant step forward in SPEA's commitment to serving the growing Southeast Asian microchip and electronics market with leading-edge manufacturing machinery and equipment.
PCB Market Size to Grow by $29.06B from 2024-2028
05/17/2024 | PRNewswireThe global printed circuit board (PCB) market size is estimated to grow by USD 29.06 bn from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of over 6.6% during the forecast period.
AT&S 2024/25 on Growth Course Again
05/17/2024 | AT&SAT&S operated in a challenging market environment in the financial year 2023/24. After a strong second quarter, demand was relatively weak again in some market segments in the second half of the financial year.
Shipments of OLED Monitors Hit 200,000 Units in 1Q24, Annual Forecast to Reach 1.34 Million
05/17/2024 | TrendForceTrendForce’s latest report reveals a robust start to 2024 for OLED monitors, with shipments reaching approximately 200,000 units in the first quarter—marking a YoY growth of 121%.
Magnachip Celebrates the Grand Opening of Magnachip Technology Company in China
05/16/2024 | MagnachipMagnachip Semiconductor Corporation celebrated the opening ceremony of Magnachip Technology Company, Ltd. (MTC) yesterday at its headquarters located in Hefei, China. MTC is a subsidiary of Magnachip, established on December 20, 2023, to expand the Company’s display driver IC and power IC businesses in China.