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Germany Finance Ministry out with its monthly report on the German economy, highlighting the following:
“Risks linked to how Brexit will shape out and future U.S. trade policies remain."
"In addition, the so-called diesel crisis should be classified as a new risk to the German economy even though its effects are not possible to quantify at the moment."
"Given the importance of the automotive industry they (the effects of the diesel crisis) must be classified in the medium term as a risk to the overall economic development."
'Diesel Crisis' in German car industry poses possible risk to economy in medium term
Strong household and state spending provided most of the impulse for the German economy in Q2
Weaker net foreign trade dampened growth(exports grew strongly less than imports)
Ministry expects the industrial sector to continue its upswing also in Q3
Notes robust orders, strong business sentiment indicators
German debt-to-GDP ratio to drop below Maastricht limit of 60pct in 2020
German 2017 budget surplus to fall to 0.5pct of DP v. 0.8pct in 2016
German 2017 debt-to-GDP ratio to ease to 66pct v. 68.3pct in 2016
