Bundesbank expects accelerated growth of German economy in the last quarter, mostly driven by the industrial sector. The attitudes are improving, the orders are growing and expected employment growth will probably continue. This in turn will support the largest economy in the Eurozone, according to the monthly report of the regulator.
“In the last quarter of 2016, the growth in the German economy will be significantly stronger after a temporary slowdown in the summer. The attitudes in the economy improved significantly. This is especially true for industry, where it is used more and more part of the capacity and new orders grow”, says the monthly report of Bundesbank.
The growth rate of the German economy slowed from 0.4% in the second quarter to 0.2% in the third. In the first quarter growth on a quarterly basis was 0.7%.
According to the central bank foundations of growth are sustainable, which will boost the GDP growth in end of the year.
Bundesbank raised its forecast for growth in 2016 from 1.7% to 1.8%, which would be the sharpest rate of growth of 5 years. In 2017, however, the pace is expected to slow to 1.4%, due to weak global trade and the consequences of the decision of Britain to leave the European Union.
However, according to the Bundesbank employment prospects are significantly improved and expected the unemployment rate to fall in the coming months.
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