Bundesbank expects expanding of the German economic activity

September 18, 2018 8:57 amComments Off on Bundesbank expects expanding of the German economic activityViews: 16

German economic activityDespite the unexpectedly weak start of the year, the German central bank (Bundesbank) expects the country’s economy to accelerate in the second half of the year.

“The upturn in Germany will remain unaffected last but not least due to the continuing positive internal situation”, says the institution’s monthly report. In July, sinking industrial orders, declining output and declining exports raised doubts about that. “The German economy started weak during the summer quarter”, acknowledged the bank. However, good moods among enterprises show “a temporary weak phase”.

The Bundesbank puts down the downtrend primarily on special effects. “This is mainly due to the industry and a peculiarity of the automotive industry, which greatly reduced its output in July”, adds the bank.

Important role had the problems of moving to a new, universal and binding procedure for testing greenhouse gas emissions for originally registered (new) cars. Volkswagen, for example, admitted that it had difficulty switching to a stricter exhaust measurement cycle. Therefore, in some subdivisions, proceedings have been suspended temporarily.

“After the problems with the conversion of measurements in the automotive sector have been overcome, the pace of the general economic expansion is expected to increase significantly”, forecasts Bundesbank. The leading research institutes envisage that the German economy will continue to boom in the coming years. According to them, growth in 2018, 2019 and 2020 could range between 1.7% and 2.0%.

Comments are closed