German economic growth set to hit 3%

Discussion in 'Economics' started by ASusilovic, Aug 20, 2010.

  1. Germany’s economy will grow by 3 per cent this year, according to a sharply upward revised Bundesbank forecast issued as investors pushed the cost of borrowing by its government towards fresh record lows.

    The economic recovery in Europe’s largest economy was increasingly generating its own momentum, the country’s central bank said on Thursday, with positive ripple effects spreading to other eurozone countries. In June, the Bundesbank had forecast almost 2 per cent growth in 2010.

    The upbeat prognosis underscored policymakers’ confidence that the eurozone will avoid falling back into recession.

    However, Germany is seen increasingly as an isolated success story within the eurozone, with its “safe haven” status boosted by a re-intensification of worries about Ireland and southern European countries worst hit by this year’s crisis over public finances.

    Shouldn´t this report manifest the economic strength in some sort of rising asset prices - hum, like German equities...?