Exports are likely to remain on the increase reflecting the continuing expansion of overseas economies, and against this background, the corporate sector is likely to continue to show strength, and the positive effects of strong corporate performance will steadily exert an influence on the household sector-in other words, economic growth will be led by domestic and external demand that are well in balance.
Another cause of relatively weak growth in Germany is the crisis in the construction industry, especially in eastern Germany. In this sector, the capacity built up immediately after reunification exceeded the longer-term ability of the real estate market to absorb it. Reduced construction activity depressed German economic growth.