Central Bank Raises German Growth Forecast

Germany’s Bundesbank raised its growth forecasts for the euro zone’s largest economy this year on Friday, highlighting the increasing divergence between the currency bloc’s member countries.

In bi-annual projections, the bank said it expects growth of 1.9 percent this year, unadjusted for calendar effects, compared with a December forecast of 1.7 percent.

The Bundesbank left its 2015 growth forecast unchanged at 2.0 percent and saw growth of 1.8 percent in 2016.

Germany has been a major driver of the euro zone recovery, which lost some momentum last month. On Thursday, the European Central Bank cut interest rates to record lows and launched a batch of measures to pump money into the sluggish euro zone.

“Germany’s strengthened domestic economy as well as the ongoing improvement in the economic situation of the industrial countries and the gradual recovery of the euro area suggests that Germany will follow a robust growth path,”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza