Germany: Migration to lift 2016 GDP growth – Deutsche Bank

FXStreet (Delhi) – Research Team at Deutsche Bank, expect that although the external and the financial environment have deteriorated we have lifted our 2016 GDP call to 1.9% (1.7%). Drivers are stronger real consumption growth due to lower oil prices/stronger EUR and the surge in immigration which should c.p. add about ½ pp to consumption (split between private and public).

Key Quotes

“The risks are mainly external (EMs). We assume that the VW emission scandal will not materially impact other German car producers neither do we see a lasting dent to “Made in Germany” weighing on exports.”