Arab Today, arab today thinktanks raise german growth forecast to 19
Last Updated : GMT 17:58:30
Arab Today, arab today
Arab Today, arab today

Thinktanks raise German growth forecast to 1.9%

Arab Today, arab today

Arab Today, arab today Thinktanks raise German growth forecast to 1.9%

Berlin - XINHUA

A group of four leading economic institutes raised their forecast for German growth in 2014 on Thursday, saying that Europe's largest economy would accelerate its growth thanks to strong domestic demand. In a joint report released on Thursday, the four institutes said German gross domestic product (GDP) would grow by 1.9 percent in 2014, higher than their previous forecast of 1.8 percent last autumn. Domestic demand would be the main driver, said the group of institutes, which include DIW in Berlin, Ifo in Munich, IW in Halle and RWI in Essen. "The German economy is experiencing an upturn in spring 2014," said the institutes, noting increasing output, number of new orders, improving employment situation, as well as sentiment among companies and consumers. Thanks to a recovering economy in the rest of eurozone, which is Germany's most important trading partner, external uncertainties continued to fade, despite the deteriorating demands from emerging markets. At the start of 2014, investment activity gained momentum, and construction was also boosted by a mild winter, said the institutes. They expected production to increase significantly during the rest of the year. Private consumption, bolstered by faster increase of disposable income and rising employment level, would make the biggest contribution, they said. Investment, driven by low interest rates, strong financial position of governments and a high level of confidence in corporations, would also stimulate growth, according to the thinktanks. "International trade, by contrast, is not expected to provide any impulse," read the report, citing larger increase in imports than in exports due to steep increase in investment. On Wednesday, German Federal Statistical Office said that German trade surplus continued to decline for the third consecutive month in February and stood at 15.7 billion euros (21.76 billion U.S. dollars), due to an unexpected drop of 1.3 percent in exports and growth of 0.4 percent in imports. The institutes expected a moderate inflation rate of 1.3 percent in 2014, and a balanced budget with surplus of 0.1 percent of GDP. They also forecast that in next year, the German economy would expand by 2 percent, driven mainly by strong domestic demand again. Meanwhile, three of the four institutes, except DIW in Berlin, warned that some of German center-left coalition government's policies, including lower retirement age and national minimum wage, would be "headwind" for the economy. The 8.5-euros-per-hour minimum wage, scheduled to be introduced on Jan. 1, 2015, would affect around four million employees and around 200,000 jobs would be initially lost, estimated the institutes. In their biannual report, the institutes also said that the tense situation in Ukraine was another uncertain factor for the outlook of German economy. European Union posed punishing measures including bank accounts freeze and travel bans to Russian officials and threatened further economic sanctions on Russia. Given the fact that Russia is the third biggest trading partner outside Europe for Germany and delivered 31 percent of crude oil and natural gas imported by Germany, some economists and companies remained worried that the German economy would be hurt if relations between EU and Russia continued to deteriorate. "Sanctions on cross-border trade in goods and capital, and especially limitations on Russian oil and gas exports, would have a serious impact on both Russia and Germany," said the institutes.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today thinktanks raise german growth forecast to 19 Arab Today, arab today thinktanks raise german growth forecast to 19

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today thinktanks raise german growth forecast to 19 Arab Today, arab today thinktanks raise german growth forecast to 19

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today How to do your own Ramadan corner?

GMT 15:53 2017 Saturday ,27 May

How to do your own Ramadan corner?

GMT 17:28 2017 Thursday ,18 May

Saudi stocks rise in heavy trading

GMT 21:37 2017 Wednesday ,17 May

US Stocks Close Mixed

GMT 04:58 2017 Wednesday ,17 May

Tadawul index gains 0.7%

GMT 06:20 2017 Tuesday ,16 May

Tadawul index climbs 0.6%

GMT 13:43 2017 Monday ,15 May

Oman share index declines marginally
View News in Arabic - Business: أسواق مالية
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday