posted at 01:50
Author Name: Mike Bird
Germany Just Slashed Its Own Growth Forecasts In Half
REUTERS/Eric MillerDespite some positive numbers on factory orders this morning, Europe's biggest economy looks to be slowing down at a pretty fast pace. The Bundesbank, Germany's central bank, just slashed its growth forecasts for the economy. Growth in 2015 is expected to be just 1%, half of the 2% that was expected previously. The German economy lost considerable momentum in the second and third quarters of 2014 and moved onto a flatter growth path. Following a brisk start to the year, which was partly fuelled by favourable weather conditions, real GDP did not grow any further in the second and third quarters after seasonal and working-day adjustment and thus failed to live up to the hopes of the June outlook. Underlying industrial output is described as "Stagnant" and the bank notes that business investment hasn't really materialised, after getting a boost at the end of 2013. In the last quarter, German GDP grew by only 0.1%, but the powerhouse economy's politicians and monetary policymakers are still pretty much staunchly against any extra stimulus.

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