German economy to grow by around 1.5 percent this year - BDI industry body

Last Updated: Tue, Jun 20, 2017 13:59 hrs
FILE PHOTO: The famous skyline with its banking district is pictured in early evening next to the Main River in Frankfurt

BERLIN  - Germany's BDI industry association on Tuesday confirmed its forecast that German economic output would increase by around 1.5 percent this year as exports pick up but it warned that Europe's largest economy should not rest on its laurels.

"The good economic situation is not a free ticket to taking a rest," said BDI President Dieter Kempf.

"Our success is due to a weak euro exchange rate, a moderate oil price and the European Central Bank's expansive monetary policy," he said, adding that Germany's influence on those factors was limited.

Given global risks, the German economy needs to be made resilient to crises so record tax revenues and budget surpluses should not lead to tax cuts but rather be used to invest and to reform tax legislation.

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