Non-residential investment has fallen over the past 20 years as a share of GDP and is now lower than in several other high-income OECD countries.
The German economy has steadily recovered from the 2008 global crisis. Thanks to past reforms, the labour market has proved strong and export performance has been impressive.
The German economy has recovered well from the most severe economic crisis of our lifetime. In spite of continued global economic turbulence, growth is now steady at 1.4% in 2015 and close to 1.3% in 2016. We are expecting this growth to improve slightly to 1.7% in 2017.
Germany is in a solid economic position, but ageing and technological change require new investments in people to ensure a stronger and more inclusive society, according to the latest OECD Economic Survey of Germany.
Achieving strong growth in the global economy remains elusive, with only a modest recovery in advanced economies and slower activity in emerging markets, according to the OECD’s latest Interim Economic Outlook.
Reforming and deregulating the domestically oriented sectors, including network industries, crafts and professional services would release hidden growth potential and prove beneficial to the economy as a whole. It could also help strengthen domestic demand and reduce dependence on exports.
Low oil prices and monetary easing are boosting growth in the world’s major economies, but the near-term pace of expansion remains modest, withabnormally low inflation and interest rates pointing to risks of financial instability, according to the OECD’s latest Interim Economic Assessment.
Sustainable supply chains can transform global trade and development by ensuring that businesses behave responsibly even in countries where social, environmental and human rights standards are weak or not adequately enforced. We have witnessed too often the disastrous consequences that can result if this is not done.
English, PDF, 100kb
This country note from Going for Growth 2015 for Germany identifies and assesses progress made on key reforms to boost long-term growth, improve competitiveness and productivity and create jobs.
While past labour market reforms have been successful in terms of employment, the relative poverty risk and income inequality have remained broadly unchanged in recent years.