For Volker Wieland German economy is not at a tipping point (CNBC)

Although the foreign trade environment is less favorable and capacity bottlenecks are slowing the pace of expansion, the German economy is not at a tipping point, according to Volker Wieland. In an interview with CNBC he said: "The German economy is sensitive to exports but it is not only about exporters".

The German Council of Economic Experts (GCEE) forecasted real GDP growth rates of 1.6 % and 1.5 %, respectively, for the years 2018 and 2019 when it published its Annual Report at the beginning of November. The decisive factor for the development in the third quarter were the problems with diesel testing in the automobile industry. In Wieland's view, this development is not alarming. "This is a bit of a slowdown but it is not a sign of recession".

Wieland criticized that Germany was not preparing for future challenges such as the demographic change. He sees the government on the wrong track. “Isn’t it natural to adjust the retirement age when life expectancy has increased?”, he asked.

Regarding a digital tax that is being discussed within the EU, Wieland warned against this approach. “We shouldn’t pursue this further. Taxing profits is not really the way to go”. As several countries had decided to lower taxes, Wieland said that Germany should follow these examples.

CNBC: "German economy is more fragile than people think"