BERLIN (Reuters) - The German economy is not in danger of overheating and has more room for growth, an economist at the Ifo institute said on Friday, after the Munich-based research institute’s monthly survey showed a slight drop in business confidence.
Klaus Wohlrabe also said that a small drop in a sub-index measuring the current situation was an adjustment from a high level. Uncertainty at German businesses has also diminished, he said, partly because they appear to have factored in risks linked to U.S. President Donald Trump’s policies.
“The German economy appears unaffected by global political developments. Optimism continues,” Wohlrabe said. “I see no overheating. The German economy has not reached a growth limit. There is still room on the upside.”
Reporting by Joern Poltz; Writing by Joseph Nasr; Editing by Paul Carrel