The need for Germany to begin spending its accrued budget surplus on infrastructure projects and housing is starting to weigh heavily on the new government. The cement industry has invested and is able to increase output. Will the public purse strings be loosened?
Germany’s economy delivered a robust performance in 2017 with a real GDP growth rate of 2.5 per cent YoY. Solid domestic demand and a rebound in exports are seen as the main drivers behind this growth while the government reported a general budget surplus at 1.2 per cent of GDP, the highest level since reunification in 1990. IMF projections for 2018 indicate further expansion of this surplus to 1.4 per cent, but real GDP growth is expected to soften to 2.2 per cent.
