BERLIN (MNI) – The German economy is currently running only at
modest speed but business sentiment still remains strong, the Bundesbank
remarked in its latest monthly report released Monday.
“Being in a fundamentally good condition, the German economy is
currently visibly lacking momentum,” the central bank said.
“Still, businesses for the most part assess their situation as
being good or at least satisfactory and continue to hire new staff in
significant numbers,” the report observed. The main reason for this is
likely the recovery trend of the global economy, it said.
Looking far ahead, the Bundesbank reckoned that despite the
dampening effects from the country’s unfavorable demographic
developments, Germany’s potential growth rate can be maintained at
around 1.25% until 2020 if the right reforms are implemented.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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