Germany’s central bank on Friday raised its growth forecasts through to 2019, on the back of strong private and public consumption.
Gross domestic product (GDP) is now expected to expand by 1.9 percent this year, up from 1.8 percent previously forecast.
Likewise, growth in 2018 would reach 1.7 percent instead of 1.6 percent, while that of 2019 will hit 1.6 percent rather than 1.5 percent.
“The solid recovery of the German economy continues,” said the Bundesbank in its report.
The bank’s chief, Jens Weidmann, underlined the role played by “private consumption, public demand and investments in housing construction.”
Meanwhile, the Bundesbank also saw consumer prices rising by 1.5 percent in 2017 rather than the earlier forecasted 1.4 percent. But for the following two years, the central bank lowered its inflation forecasts, expecting it to come in at 1.4 percent in 2018 rather than 1.7 percent and at 1.8 percent in 2019 instead of 1.9 percent.

Source: Arab News