Germany may grow twice as fast this year as earlier thought, Bundesbank says
Joachim Nagel said robust exports and government spending could lift growth to 1%, about double the Bundesbank's June forecast.
- On Friday, Bundesbank President Joachim Nagel announced Germany could grow around 1% this year, roughly doubling the 0.5% growth rate predicted in June.
- Robust export demand and the federal government's fiscal package are driving recovery, with Nagel noting "debt-financed extra government spending focusing on defence, infrastructure and climate protection."
- After three years of stagnation, the Iran war is expected to weaken Germany further as expensive energy hits its industries. Nagel said, "It's quite possible that we'll see real economic growth of around 1% on average for the year."
- Resilient growth creates inflationary pressure, potentially forcing the European Central Bank to raise interest rates further as price growth remains near twice its 2% target.
- The German economy's surprisingly strong performance is key to why forecasters now see the bloc expanding at or above its 1% growth potential, signaling a cyclical upswing.
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Reformatorisch Dagblad
welingelichtekringen.nlThe German economy could grow by 1 percent this year, according to German central bank president Joachim Nagel. Earlier this year, the Bundesbank had projected growth of only 0.5 percent for Europe's largest economy.
Germany may grow twice as fast this year as earlier thought, Bundesbank says
The German economy could grow around 1% this year — roughly twice as fast as the most recent projections — driven by robust export demand and government investment, Bundesbank President Joachim Nagel said on Friday.
ROSTOCK (ANP/BLOOMBERG) - The German economy could grow by 1 percent this year, according to German central bank president Joachim Nagel. Earlier this year, the Bundesbank had projected growth of only 0.5 percent for Europe's largest economy. "Economically speaking, the situation looks...
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