6 Jun 2014
Buba's Weidmann: German growth solid but risks remain
FXStreet (Łódź) - The Bundesbank released updated German growth and inflation forecasts on Friday, pointing towards a further strengthening of the economy this year. The GDP projection was raised to 1.9% from 1.7% seen in December, while the outlook for HICP was cut to 1.1% from 1.3%.
"Germany's strengthened domestic economy as well as the ongoing improvement in the economic situation of the industrial countries and the gradual recovery of the euro area suggests that Germany will follow a robust growth path," Bundesbank chief Jens Weidmann commented following the publication of the data.
He added however that growth could still be dampened by geopolitical tensions or a renewal of the Eurozone debt crisis. He also pointed to the upcoming tightening of the German labor market due to a demographic shift and said that "in light of these changes, measures such as the option of drawing a full pension at 63 will not help".
"Germany's strengthened domestic economy as well as the ongoing improvement in the economic situation of the industrial countries and the gradual recovery of the euro area suggests that Germany will follow a robust growth path," Bundesbank chief Jens Weidmann commented following the publication of the data.
He added however that growth could still be dampened by geopolitical tensions or a renewal of the Eurozone debt crisis. He also pointed to the upcoming tightening of the German labor market due to a demographic shift and said that "in light of these changes, measures such as the option of drawing a full pension at 63 will not help".