Le Lézard
Classified in: Business
Subjects: ECO, EGV, FOR

BDI President Dieter Kempf: Economic growth of one and a half percent expected in the coming year


BERLIN, January 10, 2017 /PRNewswire/ --

According to estimates by the Federation of German Industries (BDI), the German economy will grow by around one and a half percent in the new year. BDI President, Dieter Kempf, said in Berlin on Tuesday, "In view of the global political uncertainty which poses a particular danger to our economy, future growth cannot be taken for granted."

Kempf believes that the overall global situation is more unclear than in previous years and that uncertainties and sources of conflict are drawing ever closer to the European Union. The BDI President warned that "The things we take for granted can be jeopardised very quickly. Germany will have to work harder to maintain its current level of prosperity. Policies should back business more strongly."

The BDI currently estimates that German exports will rise by two to three percent this year. The number of employees, which currently stands at 43.5 million, will increase by up to 500,000 according to Kempf, who has been head of the BDI since the beginning of the year.

He added that the record surpluses of the federal government, the states and the local authorities must be used to protect against less favourable times - and to increase investment. This is possible without increasing taxes or compromising the recovery of public-sector budgets. "The key is upfront public investment in our transport, energy and digital networks as well as in education," the BDI President emphasised. "Only then will more participation in growth be feasible."

The introduction of tax incentives for research, which has proved successful in many industrialised countries, would offset existing competitive disadvantages. With regard to the energy transition, cost-efficiency is a foreign concept and the further development of the electricity grid is slow. "This has to change. Our companies want a successful energy transition - and one that can bring export success." The subject of controlled immigration is also on the agenda.

German business will listen carefully when Donald Trump outlines the plans for his presidency in the USA. With regard to Germany's most important trading partner, the BDI president warned of a trend shift away from free trade towards isolationism: "This would harm the entire global economy and especially the export-oriented German economy." One in four jobs in Germany depends on exports - and as much as one in two in industry.

"'Make America great again' will definitely not work if the USA isolates itself," Kempf emphasised. Companies in the USA rely on German engineering technology and intermediate products from Europe. "The European Commission must keep its channels of communication regarding a transatlantic free trade agreement open." German industry still backs TTIP, the BDI President confirmed.

German industrial companies in China are increasingly worried about government interference, Kempf said. Europeans must be able to acquire majority shareholdings in companies in China just as the Chinese can do in Germany: "The focus now is on dismantling walls in China, and not about building walls in Germany."

Kempf called for the bitter reality after the Brexit referendum to be confronted. The uncertainty surrounding the process is poison for the economy. Regarding policy in Brussels and Berlin, there should be a common approach during the negotiations, namely to stick together and make Europe stronger "In my opinion, Europe is not the problem, but the solution." Only by working together can the continent continue to be successful in the world, explained the BDI President.

Federation of German Industries e.V. (BDI)
Member association of
BUSINESSEUROPE

Contact details
Tel.: +493020281479
F: +493020282479

Web
http://www.bdi.eu

Email
[email protected]



These press releases may also interest you

at 05:51
On March 21, AAC Technologies (2018.HK) held its 2023 Annual Results Press Conference in Hong Kong. In 2023, the Group recorded a...

at 05:49
Max Stock Limited (the "Company") today announced a share purchase by a company jointly owned by one of the Company's directors, as follows: Entity which performed the transaction Relationship to Company's senior officers Date of transaction...

at 05:40
Keep Inc. ("Keep" or the "Company"), the largest online fitness platform in China, today announced its audited annual results for the year ended December 31, 2023. Full Year 2023 Financial Highlights Total revenues were RMB2,137.8 million in 2023, a...

at 05:30
BrightPoint (BP) LLC, an 8(a) joint venture between Buchanan & Edwards (BE) and i3, is pleased to announce its successful bid for a position on the U.S. Department of Commerce's Commerce Acquisition for Transformational Technology Services (CATTS)...

at 05:30
The "High Net Worth (Hnw) Asset Allocation Trends 2024" report has been added to  ResearchAndMarkets.com's offering. Drawing on our 2023 Global Wealth Managers Survey, this report analyzes HNW asset allocation strategies in 24 key markets. In...

at 05:30
FinVolution Group ("FinVolution," or the "Company") , a leading fintech platform, today announced that its Philippines financial application, Juanhand, has entered into a strategic cooperation agreement with SeaBank Philippines Bank ("SeaBank"), an...



News published on and distributed by: