Bundesbank raises growth outlook for Germany
GERMANY’S Bundesbank has hiked its growth projections for the country for this year and next year, highlighting the diverging fortunes of the Eurozone’s economies.
The bank said it expects the Eurozone’s biggest economy to grow 0.5pc this year and 1.7pc next year compared with June-forecasts of 0.3 pc and 1.5pc respectively.
Germany has been a major diver of the fragile Eurozone recovery and the projections are in stark contrast to the difficulties facing other big European players including neighbouring France, as well as Italy. Growth is also expected to increase to 2pc in 2015.
This compares with the projections from the Department of Finance here of growth of just 0.2pc this year and 2pc next year.
The Bundesbank said the improvement was driven mainly by demand at home rather then from abroad, benefiting from low-interest rates and growing incomes.
"The German economy is in good shape: the unemployment rate is low, employment is rising, and wage growth is returning to normal," the bank’s President Jens Weidmann said.