Germany's news in English

Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland

Bundesbank halves 2015 growth forecasts

Share this article

Bundesbank halves 2015 growth forecasts
Photo: DPA
09:40 CET+01:00
The German central bank on Friday downgraded its growth forecasts for Europe's biggest economy for this year and the next two.

The Bundesbank said in a statement it is pencilling in growth of 1.4 percent for 2014, 1.0 percent for 2015 and 1.6 percent for 2016.

Previously, it had been projecting growth of 1.9 percent, 2.0 percent and 1.8 percent for the three years, respectively.

"The German economy lost considerable momentum in the second and third quarters of 2014 and moved onto a flatter growth path," the Bundesbank wrote.

"Following a brisk start to the year, which was partly fuelled by favourable weather conditions, real GDP (gross domestic product) did not grow any further in the second and third quarters ... and thus failed to live up to the hopes" of the central bank's previous projections published in June.

Nevertheless, the German economy "remains in remarkably good shape, which is not only benefiting the domestic economy but also enabling German exporters to seize opportunities on foreign markets," said Bundesbank president Jens Weidmann.

"Such opportunities should increase again over the course of 2015 provided that the economic recovery in the euro area strengthens and world trade gathers momentum."

 
Get notified about breaking news on The Local

Share this article

The Local is not responsible for content posted by users.
Become a Member or sign-in to leave a comment.

From our sponsors

How to work 9-5 and travel the rest of the time

A full-time job shouldn't stop you from satisfying your wanderlust. The Local spoke to Travel After 5 blogger Alline Waldhelm to find out her tips and tricks for travellers who only have 25 days of annual leave.