BERLIN, Oct. 19 (Xinhua) -- German economic growth will continue unabated in 2017, a study published on Thursday by the Association of German Chambers of Commerce and Industry (DIHK)said.
According to the DIHK's autumn survey, gross domestic product (GDP) will grow by 2.2 percent in 2018. The business advocacy group also raised its forecast for GDP growth in 2017 from 1.8 percent to 2 percent.
A rise in expectations for economic growth measured in the spring had been met by reality and would also be reflected in continued expansion in 2018, DIHK general mangager Martin Wansleben said at the presentation of the study in Berlin.
"The business outlook for firms is better than ever," he added.
The 27,000 German businesses surveyed by DIHK were more optimistic about the development of domestic demand and had further raised their hiring goals in response.
"As a consequence, consumption is likely to rise again next year", Wansleben argued. The DIHK general manager also pointed to "record level" of investments planned by firms as a reason to be optimistic about the prospects of the German economy.
However, 35 percent of firms surveyed expressed worries that that the political climate posed a risk to their commercial development. Business leaders hereby pointed to the growing likelihood of a "hard Brexit" which would lead to the imposition of costly tariffs and stricter border controls.
Firms estimated the resulting administrative costs for German firms at 500 million euros (592 million U.S. dollars).
Nonetheless, DIHK expects firms to create another 600,000 additional jobs in 2018 after already adding 650,000 positions in 2017.
The advocacy group urged the German government to use the current economic momentum to implement structural reforms, including tax reforms, which would strengthen the longer-term competitiveness of domestic businesses on international markets.
