Germany is the world’s
third-largest exporter, the Eurozone’s largest economy and currently has one of
the lowest unemployment rates in the world. Unfortunately, due to tensions in
international trade and structural changes in the economy, the growth pace of
the economy is below 1% and this is not expected to change in the coming years.
Unemployment has remained at low levels throughout the last years (3,4% in
2019). In light of the shortage of skills in the labour force and programmes to
support flexible working hours, worsening conditions in the labour market are
not expected.
Even though weak world
trade growth has contributed to further reduction of industrial production and
a slowdown in the German economy, the expansionary monetary and fiscal policy will
continue to support the growth. At the same time, the weaker external demands
are supported by domestic forces. Private consumption is supported by the
growth of household disposable income due to fiscal policy measures and growth
in wages. Therefore, despite the slowdown in the economy, German Consumer
confidence remained high throughout 2019. The construction sector has remained
robust and business confidence in the sector is strong. The slowing housing
investment in the second quarter of 2019 was largely temporary and mild weather
conditions enabled more construction during the winter months and real estate
development companies are well stocked with upcoming projects.
Continue reading “The real estate market in Germany”
