FRANKFURT (MNI) – Heightened uncertainty from the worsening of the
budgetary situation in many Eurozone states has not yet had a noticeable
impact on the German economy, the Bundesbank reported Monday.
In its mostly backward-looking report, the bank also reiterated
that German GDP is likely to “increase strongly” in the second quarter
thanks to the recovery in the global economy.
“The increased uncertainty as a result of the worsening of the
budgetary situation in a number of EMU partner countries has up to now
not yet been reflected” in the German economy, the bank wrote.
After moderate growth this winter, the economy “clearly” picked up
momentum in the spring, the bank wrote, noting the strength of industry
order and the quick recovery in construction after the harsh winter.
“Therefore, real GDP will presumably strongly increase in the
second quarter of 2010,” the bank predicted.
Once again, producers of basic goods will benefit particularly from
the rebound, the bank noted. Construction is also being supported by
government stimulus plans, it noted.
By contrast, despite “relatively stable retail sales,” private
consumption will likely be lower than in the first quarter as a result
of “further declining automobile sales,” the bank predicted.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: M$G$$$,M$X$$$,M$$EC$]
