BERLIN (MNI) – German GDP in the third quarter likely still grew
significantly but the economic outlook for the subsequent two quarters
has further clouded over, the Bundesbank said in its latest monthly
report, released Monday.
Despite the expected “normalisation” of GDP growth in September,
for the full third quarter there will remain “a significant plus,” the
Bundesbank said.
However, the economic outlook for 4Q 2011 and 1Q 2012 “has further
clouded,” the central bank remarked. Sentiment in the manufacturing
sector has further deteriorated and foreign orders have markedly
declined, it noted.
Regarding the country’s fiscal situation, the Bundesbank pointed to
“a very positive development” of federal and regional government budget
deficits this year due to the “unexpectedly favorable economic
development” in 2011.
Still, the central bank insisted that there remains a need for
further budget consolidation.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,MGX$$$,M$$CR$,MFX$$$,M$G$$$,M$$EC$,MFGBU$]
