Bundesbank Significantly Raised Its Forecast Economic Growth of Germany
Germany's gross domestic product will grow in 2014 by 1.9 percent, and in 2015 - by 2 percent. These data are contained in the spring forecast of the German Federal Bank.
Online, June 23, 2014 (Newswire.com) - German Federal Bank (Bundesbank) expects that in the current and next year the German economy expected to grow significantly. According to the latest forecast of the bank, presented on Friday, June 6, the gross domestic product (GDP) in 2014 increased by 1.9 percent (it is 0.2 percentage points higher than the January forecast data), 2015 - 2 percent , and in 2016 - by 1.8 percent.
At the same time, inflation in Germany, according to the calculations of the Bundesbank in the foreseeable future will remain well below the goal of annual growth of prices established by the European Central Bank at slightly less than 2 percent. This approach only around Germany in 2016, when inflation is expected to be 1.9 percent. In 2014 and 2015 the Bundesbank expects price growth at respectively 1.1 and 1.5 per cent, reports Reuters.
The number of unemployed in the current and next year will be about 2.8 million people. Good economic conditions will impact on tax collection. Prior to 2015, the state budget will remain more or less balanced, and in 2016 it will be possible to achieve a significant surplus. Said in a statement the German Federal Bank.
Germany's economy is expected to rise. As published in the Thursday, June 12, the report of the Institute of World Economy (IfW) in Kiel, gross domestic product (GDP) in the country in 2014 will grow by 2, and the next - by 2.5 percent. Institute experts predict a rise in consumer spending and business investment: scientists estimate looks optimistic forecast of the government of Germany, which resulted in data on 1.8 and two percent, respectively.
One of the main reasons for the increase is the expansive monetary policy of the European Central Bank (ECB), which cut its benchmark interest rate to 0.15 percent, and introduced the penalty interest rate for banks. These steps will improve the financing conditions of enterprises, and will stimulate lending. At the same time, the Institute of World Economics notes that the measures taken by the ECB, represent a danger to the stability of the financial system and development environment.
According to experts of the Institute of World Economy, and is also expected to increase consumer prices in inflation this year will be 1.2, and in 2015 - 2.2 percent.
More updates about German economy and financial markets at http://gerbanks.com