The economic methods increase growth forecast of German economy, but at same time warn against a too high utilization of production capacities. The reports unanimously cite several media, which are quoted in advance from Expert Council’s annual opinion for federal government. The report will be officially presented tomorrow.
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According to figures, five wise men of Essen’s Professor Christoph Schmidt are forecasting an economic growth of two percent in Germany for this year. 2018, it will be 2.2 percent. Up to now, experts from 1.4 percent had assumed this and 1.6 percent for coming year.
The continued growth, however, could lead to an “overheating of economy”, according to German radio in opinion. Accordingly, German economy is currently in a capacity overload. The budget surplus of well 31 billion euros should refore be used for growth-friendly reforms.
As Handelsblatt reports, economic methods demand a departure from “distribution course” of grand coalition. The parties of a possible Jamaica coalition should be moderate in distribution issues. Instead, consultants pleaded for a “future orientation” in form of tax and duty relief. Citizens should be given more income from cold progression with a reform of income tax. The solidarity surcharge should be gradually abolished. In addition, contribution rate for unemployment insurance should be lowered from three to 2.5 percent, newspaper quotes from opinion.
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The estimation of economic methods coincides with autumn forecast of federal government, which Federal Minister of Economics Brigitte Zypries (SPD) had presented a month ago. In this, too, two percent of economic growth had been predicted for this year. “The German economy is doing well,” said Zypries at show. Neverless, re are problems, such as suspended regions with high unemployment. The minister also criticized ” fact that we still have a relatively large number of people who are slightly employed.”
