BERLIN (MNI) – The German Bank Association (BDB) expects strong
German GDP growth in the second quarter before momentum starts to slow.
In its latest monthly report released Thursday, the association
said quarterly GDP growth of above 1% was possible in the second
quarter. For the third and fourth quarter the association projects only
growth rates of 0.5% each. For 2010 as a whole, it sees GDP growth at
2.0% and slowing to 1.5% next year.
“Sentiment indicators for the global economy and for Germany
signals a slowing of growth momentum in the coming months,” the BDB
said. “The exceptionally high growth momentum from the second quarter
won’t be upheld in Germany.”
The phasing out of worldwide economic stimulus measures and the end
of the inventory cycle will weigh on growth, it reasoned. Moreover, the
European debt crisis will be a drag on the recovery in Germany and the
Eurozone, it added.
However, “fears that the global economy will fall back into
recession are exaggerated from today’s viewpoint,” the BDB assserted.
Leading indicators are signalling a continuation of global growth, yet
at a more moderate speed, it argued.
Moreover, monetary policy in the Eurozone and the US will remain
expansive for a longer period, thereby also supporting growth, the BDB
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