German central bank lifts economic growth forecast for
FRANKFURT, Dec. 3 (Xinhua) -- The economic recovery of the Germany took a major step forward in 2010, German central bank ( Bundesbank) said Friday in its bi-annual economic outlook, hiking the growth outlook and projecting the fastest expansion since data for a reunified country began in 1992.The Frankfurt-based central bank of Europe's largest economy said it expected gross domestic product to grow at an estimated 3. 6 percent in 2010, recovering a substantial part of the crisis- induced decline in output from 2009.
According to the Bundesbank, the upturn in the German economy may continue in the next two years at rates of 2.0 percent and 1.5 percent respectively.
Therefore, the pre-crisis level of GDP will thus be matched again towards the end of 2011. The Bundesbank's forecasts are slightly below those of the European Commission, which estimated the growth rate this year at 3.7 percent, falling to 2.2 percent next year and 2.0 percent in 2012.
The most important mainstay of Germany's economic recovery was buoyant demand for the products of domestic industry on the world markets, the Bundesbank added.
Exports will remain the main driving force behind the German upturn, although external impulses will have a growing impact on domestic activity.
The bank forecast that corporate investment is likely to increase sharply and private consumption is being given a boost by the positive development in the labor market and from rising rates of pay.
The Bundesbank said that the main risk to its outlook came in particular from continuing uncertainty in the financial markets related to the fragile state of public finances in a number of advanced economies.
The forecast is solidly above 0.75 percent estimate of Germany's medium-term growth potential, but the central bank said the above- trend growth isn't likely to cause inflation.
The bank expected the consumer price index to rise by only 1.7 percent in 2011 and by 1.6 percent in 2012, below the ECB's inflation target of 2 percent.
页:
[1]