BERLIN, 15 October 2015: The German economy is moving in the right direction despite the weakening global economy, said German Vice Chancellor and Minister for Economic Affairs and Energy Sigmar Gabriel on Wednesday.
“The German economy continues to grow,” said Gabriel.
The German government lowered its forecast for gross domestic product (GDP) growth in 2015 from 1.8 to 1.7 percent and expects an increase of 1.8 percent for the coming year, according to the minister.
Private consumption was the central force behind the positive development, he said, adding that rising incomes were also a key factor helping the German economy.
However, the German government expects more unemployment despite robust economic trends.
While unemployment this year will fall by 98,000 people, it will increase slightly by 60,000 people in the coming year in the face of high immigration, said the German ministry of the economy.
“The major challenge for Germany is the high refugee migration from crisis areas,” Gabriel noted.
The German government’s autumn forecast was finalized by an interministerial team on Wednesday under the auspices of the German ministry of the economy and energy.