Macroeconomic development

The global economy grew by 2.9 percent in the reporting year – the lowest growth rate since the sovereign debt crisis. In the previous year, it had stood at 3.6 percent. Growth also slowed in our core markets, although it remained positive. While growth in Germany fell well below the EU average, Poland, Hungary, and Romania were still among the fastest growing European economies.

GDP in Germany increased by 0.6 percent year-on-year, with the export-dependent economy suffering as a result of the slowdown in global trade. Industrial production declined, however domestic demand remained stable, with consumer spending bolstering the domestic economy. The average unemployment rate for the year was 5.0 percent in 2019. The U.S. economy grew by 2.3 percent in the reporting year, with the labor market remaining in good shape. The countries in our Europe operating segment posted consistently robust growth in 2019. 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/non-employment rates in our most important markets. The unemployment rate for Germany and the non-employment rates for the other countries are presented in conformance with ILO standards.