The economic environment

• Economic development in our core markets positive
• Regulatory intervention continues to impact negatively on the telecommunications market

Macroeconomic development

The global economy grew by 3.7 percent in the reporting year – more than in any single year in the period 2012 through 2016, and on a par with 2017. In our core markets, economic growth rates recorded positive trends overall in 2018. While growth in the United States was significantly stronger year-on-year, in the eurozone growth has tailed off in recent months.

GDP in Germany increased by 1.5 percent year-on-year, driven by consumer and public spending as well as investments. Average unemployment in 2018 was 5.2 percent, putting employment levels in Germany at a record high. The U.S. economy grew by 2.9 percent in the reporting year, with unemployment at 3.9 percent – its lowest level yet. The countries in our Europe operating segment posted consistently robust growth in 2018. The national economies continued to profit from rising domestic consumption and stable demand. The situation in the national labor markets in our Europe operating segment continued to improve thanks to positive economic growth.

The following table shows the GDP growth rate trends and the unemployment rates in our most important markets.