BERLIN, April 26 (Xinhua) -- The German government forecasts an improved overall economic climate and a record rate of employment, a government economic report has said.
The spring projections 2017, presented on Tuesday in Berlin by Minister for Economics and Energy Brigitte Zypries, shows a peak in the number of people employed in 2018 of 44.4 million.
This year, the number of employed persons will increase by 530,000 and by a further 310,000 in 2018. The average annual number of unemployed people will drop by 140,000 in 2017 and stay at that level in 2018, despite the large number of refugees in Germany.
The international refugee crisis caused many experts to anticipate an increased unemployment rate, since many of those who fled to Germany will now enter the job market. This is offset by the improving general state of the German economy.
The German government raised its economic growth forecast for 2017 to a 1.5-percent increase in the gross domestic product, compared to the 1.4 percent growth projected in January. The growth rate prognosis for 2018 is 1.6 percent.
The improved global economic situation will lead to an increase in the export of German goods, while at the same time lowering the export surplus. The current account surplus is expected to lower to 7.3 percent in relation to GDP in 2018, compared to 8.3 percent in 2016.
Federal, state and regional governments, as well as social insurance, use the economic report for tax estimates to ensure they align their budgeting accordingly.
