Germany Will No Longer Outperform the EU in 2017 Says MS

September 21, 2016 Share Print 0

The powerhouse German economy will no longer outperform the euro zone in 2017 according to a new report from Morgan Stanley.

Germany is the largest economy in Europe with a nominal gross domestic product (GDP) in 2016 of $3.5 trillion, according to the International Monetary Fund (IMF).

The country, a founding member of the European Union, is often lauded for its skilled manufacturing base and strong export surplus.

However a new note Tuesday from Morgan Stanley’s chief European economist, Elga Bartsch, suggests the German engine may be spluttering.

Citing external headwinds, the note forecasts German GDP growth will slow from 1.5 percent this year to just 1 percent next year, no longer outperforming the wider euro zone.

Morgan Stanley data said the last time that occurred was 2009.

via CNBC

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Alfonso Esparza

Senior Currency Analyst at Market Pulse

Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.