The German economy is a highly developed social market economy. It is the largest national economy in the eurozone, fourth in the world by nominal GDP, and fifth by Purchasing Power Parity. According to the IMF, in 2017, the country is projected to account for 28% of the eurozone economy. In addition, Germany recently recorded the highest trade surplus in the world worth $310 billion in 2016, making it the biggest capital exporter globally.
In August, German industrial orders rose from the previous month, posting the biggest increase of 2017, showing signs of strong foreign and domestic demand. According to the German federal statistics office, new manufacturing orders climbed 3.6 % from the previous month on a seasonally and working-day adjusted basis.
Furthermore, domestic orders climbed 2.7%, exemplifying the strength of the eurozone’s powerhouse economy. International orders, outside of the eurozone are also up 7.7 %, proving a strong euro has made little impact on demand. Due to strong erratic monthly movements in the first eight months of the year, on average new orders increased by only 0.1%. The German economy is a big reason for the overall bullish performance by the eurozone economy in 2017.
Keith Knutsson of Integrale Advisors states “Combined with strong business data, showing production expectations as well as orders books close to record highs, the German industry is set to end the year at maximum speed. Thanks to the strong data provided by the German Economic Bureau, 2017 now looks as good as ever.”