The Bundesbank shows optimism about the future of the German economy and revises its growth estimates for this year and next, revising the previous forecasts positively.
According to Buba, Gross Domestic Product will grow by 0,5% in 2013 and 1,7% in 2014 (instead of the expected +0,3% in 2013 and +1,5% in 2014). For 2015, GDP growth is expected to be 2%. The revision of the estimates, clearly divergent from the euro area, reflects – according to the German central institution – the improvement in domestic demand, thanks to low interest rates and rising incomes.
"The German economy is in good shape: low unemployment, an increase in employment and a return to normal for wage growth", commented Jens Weidmann, president of the Bundesbank. The bank also announced its consumer price estimates, forecasting inflation at 1,6% this year, 1,3% in 2014 and 1,5% in 2015.
