Recruiting in Germany Bulletin January 2018

Recruiting in Germany Bulletin

Welcome to our January 2018 Recruiting in Germany Bulletin. This latest update indicates a continued demand for key skills in Germany, and we highlight some of the economic key trends leading commentators are predicting.

If you are looking to recruit experienced sales staff to enable you to exploit new or existing markets within Germany, the UK, Europe or further afield, please call us for a no-obligation discussion.

Economic Commentary - what they are saying

GERMAN ECONOMIC INDICATORS IN January 2018

The Germany economy should continue to grow solidly in 2018 on the back of a strong labour market and low-interest rates that are boosting the private sector economy.

House building across Germany is growing rapidly and will certainly increase in 2018 over 2017.

Household expenditure, supported by rising wages, should further fuel growth.  German consumers are seemingly still confident that the economy is going to grow further, despite there being no political solution within the country.

The downside risks remain, however, in the prolonged political uncertainty and the strong euro, which could drag on export growth.

Analysts see GDP growth at 2.2% in 2018, up 0.2 percentage points from December’s estimate, and 1.8% in 2019.

The forward-looking consumer confidence indicator (published by the GfK Group) for January increased to 10.8 points, up from 10.7 in December.

Inflation in Germany has risen slightly going into January mainly due to higher that average fuel and food prices.

Due to increased tax revenues over the past two years, the national debt is at last falling.

GERMAN EXPORTS

Exports from Germany rose by 8.2 percent year-on-year to EUR 116.5 billion in November of 2017 and have surged higher going into 2018. The biggest threat to the continued rise in German exports, however, is the high value of the Euro against the dollar. Mainly due to the continuing growth of Exports Germany had developed an enormous trade surplus compared to their major trading partners like the USA which has given cause for concern.  The US President has suggested Germany is unfairly taking advantage of a weak currency to boost its exports.

ELECTION IN GERMANY in 2017 and the formation of a new government

German Chancellor Angela Merkel used a speech during New Year to call for the speedy formation of a new government. Merkel’s comments are an effort to put pressure on the centre-left Social Democrats (SPD), who commenced talks on January 7 with the chancellor’s conservatives on the possibility of forming a government.

Merkel has been unable to establish a new administration following September’s general election. She and her ministers from the last coalition with the SPD remain in office in a caretaker capacity.

In November the coalition talks collapsed between her Christian Democrats (CDU), the Bavarian Christian Social Union (CSU), the liberal Free Democrats (FDP) and the Greens. Herr Lindner from the FDP pulled the plug on further negotiations, saying he would be happy to lead his party in opposition, as the four parties were miles apart.

Exploratory discussions with the SPD are now expected to wrap up by mid-February although the three parties are still nowhere near reaching a settlement.Many people now believe that new elections are inevitable.

There is also a rising call for Angela Merkel to step down as many see her as not being able to bring the parties together

*Compiled from a number of news sources in January 2018