7 Jun 2013
Buba lowers German growth outlook
FXstreet.com (Barcelona) - In its monthly report released today, Deutsche Bundesbank cut the German GDP forecast for 2013 to 0.3% from the previous estimate of 0.4% and suggested that the reduction is due to the expected slowdown in export growth in comparison with import growth. The forecast for 2014 was lowered from 1.9% to 1.5%.
According to the publication, Eurozone is bound to start recuperating in the second quarter of the year. “Nevertheless, the Bundesbank sees continuing structural problems as standing in the way of a rapid improvement. This is likely to place a major strain on the German economy, which is integrated into the international division of labor,” the Bundesbank said.
Furthermore, the central bank stressed the importance of implementing structural reforms in the Eurozone and expressed its concern about the recent slowdown in consolidation efforts. It pointed out that a further drop of confidence would have an adverse effect on the German economy.
According to the publication, Eurozone is bound to start recuperating in the second quarter of the year. “Nevertheless, the Bundesbank sees continuing structural problems as standing in the way of a rapid improvement. This is likely to place a major strain on the German economy, which is integrated into the international division of labor,” the Bundesbank said.
Furthermore, the central bank stressed the importance of implementing structural reforms in the Eurozone and expressed its concern about the recent slowdown in consolidation efforts. It pointed out that a further drop of confidence would have an adverse effect on the German economy.