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Although the German economy seems to have made a
strong start to the year, we still expect the pace of growth to moderate a
touch in 2017 as a whole. In addition to the exceptional support from low
inflation fading, ongoing uncertainties may prompt firms to take a cautious
stance towards investment. We continue to
forecast a slowdown in GDP growth from last year's outurn of 1.8% to 1.5% in
2017, with a further slight easing to 1.3% in 2018.
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