According to a report from the Commerzbank, the German economy is predicted to increase by 2.5 percent this 2018 upon gaining strong growth of 2.3 percent in 2018. The main economic driver is the private consumption due to the expansion of employment and suitable wage increase. Moreover, the improving machinery and equipment investments are projected to support the success of Germany. The international economy rose in favor of financial conditions and growing capacity bottlenecks which indicates that there are more companies who invested again. The momentum is driven by construction investments and sustained by high demand for real estate. The economy of Germany further grew in the past decade compared with other European countries. However, the optimism might end in the longer-term due to the instability of the country’s strong price competitiveness which is one of their pillars towards prosperity. On the other hand, the biggest economy in the EU slid to 16th rank out of 28 countries as the most attractive business location around the world. This is because of the recent reform implemented by eastern European nations.
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