August 2018 Recruiting in Germany Bulletin
Listed Under: News & Bulletins
Recruiting in Germany Bulletin
Welcome to our August 2018 Recruiting in Germany Bulletin. This latest update indicates a continued demand for key skills in Germany, and we highlight some of the economic key trends leading commentators are predicting.
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Economic Commentary - what they are saying
GERMAN ECONOMIC INDICATORS in August 2018
There has been a number of key indicators of note in August - with business confidence in Germany’s private sector jumping to 103.8 points in July, likely due to the negotiated (albeit temporary) halt to the trade conflict between the US and the EU and partly to German domestic dynamics.
August’s IFO index reading marked the highest since February and the first monthly increase in the headline figure since November last year.
There is a hint in Germany of a summer increase in business confidence. Above all, confidence among manufacturers increased for the first time in seven months, chiefly due to improved expectations in the automotive industry, with firms preparing to increase output and accelerate new technologies.
The economy, spearheaded by domestic demand, grew 0.5% quarter-on-quarter from January, which is slightly above the first quarter’s 0.4% increase. On an annual basis, economic growth accelerated from 1.4% in the first quarter to 2.3% in the second quarter on a price-adjusted basis. The economy should therefore continue growing robustly over the next few quarters on the back of domestic demand.
The Bundesbank is predicting the economic activity to increase 2.0% in 2018 and 1.9% in 2019.
A leading German economic forum is more optimistic for this year and foresees economic activity expanding 2.4%, which is unchanged from last month’s forecast.
The inflation rate seems stable at approximately 2%.
Germany’s exported goods plus services represent 47.3% of total German economic output or Gross Domestic Product.
66% of German exports by value are at present delivered to other European countries while 18.3% are sold to Asian importers.
Germany ships at present another 10.5% worth of goods to North America.
The UK is Germany’s fifth-largest trading partner and imported €84bn (£76bn) worth of German goods last year, but there seems to be uncertainty for the 2,200 UK-based German businesses and their 412,000 employees due to the present situation in the UK amid the Brexit negotiations.
The German government will have to buffer the effects of the US-Chinese squeeze. Germany is caught between tough American protectionism and aggressive Chinese industrial policy.
The US government has threatened to impose painful sanctions on key German export goods such as automobiles. China’s industrial policy is aimed at acquiring important industrial technologies and is trying to invest heavily in Europe.
Analysts are saying Germany should reduce the vulnerability of its export industry by promoting domestic growth and internal/European investment. German dependency on exports to the United States and China may well be reduced somewhat over the coming months it seems.
*** Compiled August 2018 from various news sources.
Disclaimer :The information included above is aggregated from various news sources and this document provides very basic and general information and should not be read as legal advice. The accuracy of the data cannot be verified. This is particularly so as each case hinges on its own merits