German economic
growth will remain solid over the coming years, as the economy rebalances away
from exports and to domestic demand.
A rise in domestic
consumption will reduce Germany's large national savings ratio, which is one of
the largest structural imbalances in the eurozone.
Germany will run
small budget deficits in the years ahead, but its overall credit risk position
will remain very favourable compared to most large eurozone economies.
Chancellor Angela
Merkel will struggle to retain popular support in the coming months, but will
still win the next federal election in 2017 if she decides to run.
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