Bundesbank Says German Economy to Lack Momentum for Rest of 2014
2014-11-17 11:00:00.8 GMT
By Alessandro Speciale
Nov. 17 (Bloomberg) -- “Gloomier expectations and stagnant
orders point to economic development lacking momentum at least
until the end of 2014,” Bundesbank says in monthly report
published today
* “The expansionary path of the German economy has
fundamentally flattened since the start of the year”
* “Cyclical slowdown comes from the manufacturing industry”
* “Positive effects could come from other external factors
such a considerable depreciation of the euro and a steep
fall in oil prices”
* “The dynamism of the domestic economy can as before be
supported by private consumption, because of the good
condition of the labor market, strong immigration and
significant wage increases”
* Outlook for public finances next year is for a “limited”
deficit in consequence of probable higher social spending
* “A still-high debt ratio and unfavorable demographic
developments also speaks for Germany’s pursuit of a
structurally balanced budget in the medium term”
* A debt-financed German stimulus package would not be
“productive” and infrastracture investment can be financed
without new debt
* NOTE: German and French Economies Rebound as Italian Slump
Persists NSN NF0W1I6JTSE8<GO>
For Related News and Information:
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First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Alessandro Speciale in frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net
To contact the editor responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
fobrien@bloomberg.net
2014-11-17 11:00:00.8 GMT
By Alessandro Speciale
Nov. 17 (Bloomberg) -- “Gloomier expectations and stagnant
orders point to economic development lacking momentum at least
until the end of 2014,” Bundesbank says in monthly report
published today
* “The expansionary path of the German economy has
fundamentally flattened since the start of the year”
* “Cyclical slowdown comes from the manufacturing industry”
* “Positive effects could come from other external factors
such a considerable depreciation of the euro and a steep
fall in oil prices”
* “The dynamism of the domestic economy can as before be
supported by private consumption, because of the good
condition of the labor market, strong immigration and
significant wage increases”
* Outlook for public finances next year is for a “limited”
deficit in consequence of probable higher social spending
* “A still-high debt ratio and unfavorable demographic
developments also speaks for Germany’s pursuit of a
structurally balanced budget in the medium term”
* A debt-financed German stimulus package would not be
“productive” and infrastracture investment can be financed
without new debt
* NOTE: German and French Economies Rebound as Italian Slump
Persists NSN NF0W1I6JTSE8<GO>
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Alessandro Speciale in frankfurt at +49-69-9204-1201 or
aspeciale@bloomberg.net
To contact the editor responsible for this story:
Fergal O’Brien at +44-20-7330-7152 or
fobrien@bloomberg.net