FRANKFURT (MNI) – Annual GDP growth in Germany should exceed 3% in
2010, the Bundesbank said in its October monthly bulletin.
Unemployment is also on the verge of dropping below the level where
it stood directly before the crisis, the German central bank posited.
Moreover, the importance of domestic demand in the country’s economy is
steadily increasing, it said.
The country’s public budget deficit is expected to remain below 4%,
the bank reiterated.
“In Germany, real GDP should increase by more than 3% in the
current year versus last year,” the bank wrote. Employment has made it
through the “very shallow” low point caused by the crisis.
“The total deficit should not rise as much as initially feared” and
should “clearly remain under the 4% mark,” the bank repeated.
Still, Germany’s debt level is expected to rise significantly,
primarily because of the measures taken to support the financial system
during the crisis, the bank forecast.
At the same time, Germany is profiting from an interest rate level
that is “very low,” the bank commented, noting that this was due to the
sustainability of the country’s public finances and probably also to its
economic outlook.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: M$X$$$,M$$EC$,M$G$$$,MGX$$$]
