FRANKFURT (MNI) – The global recovery should regain some traction
towards year-end, the Bundesbank said in its Monthly Bulletin on
Thursday.
However, the German central bank warned that in the absence of much
needed consolidation measures in the Eurozone’s periphery, their
economic outlook remains bleak.
Much as expected, the global economic recovery slowed over the
summer months, the Bundesbank noted. “Various recent indicators,
however, suggest that the speed of the expansion should pick up towards
the end of the year,” it said.
Closer to home, the German central bank noted that Germany remained
the growth motor of the Eurozone, thereby acting as a stabilizer. By
contrast, “the countries in the periphery are weighing on the overall
results again.”
“In addition, most recently the tense situation of public finances
in some of these countries returned to the focus of investors’ attention
with a vengeance,” the report observed.
“Without much-needed measures to regain investors’ trust, the
economic outlook of the countries in questions will remain weak,” the
Bundesbank warned.
–Frankfurt bureau; +49-69-720142, jtreeck@marketnews.com
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