The German economy is robust and growth will top the predictions of many a forecaster. Germany does not have an overheated housing market – not least thanks to a more conservative housing finance regime – domestic businesses have enhanced their competitiveness and are coping with the strong euro better than others. Sentiment on the financial markets is much more negative than in the business sector as a whole. By the end of the year the Dax could be back flirting with the 8000 mark, the labor market should continue to perform well; however, on the wage front, the pendulum must not be allowed to swing too far in the other direction. / Only available in German.