Nowadays German economy is struggling against big inflow against migrants and refugees. The refugees with prospects to stay durably will enter the labour market gradually and can help reduce the impact of demographic change in the near term. Despite such challenges, German economy is likely to strengthen in 2016. Strong labour market, low interest rates and low oil prices likely to support the economy.
Unemployment data for Germany is due tomorrow and is expected to have decreased by 12,000, following a drop of 14,000 in December. According to Societe Generale, PMI employment survey weakened slightly in January and it remains at a high level of close to 54, signalling continued expansion in employment. Moreover, the soft demand situation in Q4 2015 and increased uncertainty in the global outlook early in 2016 will provide some control in the German labour market.
