Germany set for solid growth in second half of year
(19 August 2015 – Germany) The Bundesbank, Germany’s central bank is forecasting solid economic growth for the second half of the year.
It said growth in the economy would be boosted by both external and domestic demand.
In the three months to June Germany reported its economy grew 0.4 percent.
The Bundesbank has noted that the slowdown in China could add uncertainty to the overall growth prospects on a global scale.
"The risks of a stronger economic slowdown [in China] remains high," the bank said.
"The decision of the Chinese central bank to allow the yuan to depreciate against the US dollar can be seen as evidence of the uncertainty."
In its August report, the Bundesbank said that Germany would benefit from increases in real earnings domestically, as well as economic recovery in the eurozone.
Accelerating growth in the United States and Britain - two of Germany's key trading partners - would also contribute to Germany's growth.
"The conditions are currently in place for solid economic growth in the second half of 2015, fuelled by both external and domestic demand," the bank said.
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