German central bank optimistic on 2015 growth year

Chris Papadopoullos
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The ultra-hawkish Bundesbank president Jens Weidmann
GERMANY and the Eurozone can expect decent economic growth for the remainder of the year, the Bundesbank said yesterday.

The German central bank, which acts mostly as a research house given monetary policy has been handed over to the European Central Bank, said the strong growth seen at the start of the year likely continued over summer.

The bank also pointed to rising employment and climbing incomes, which have also been boosted by falling oil prices.

Germany’s unemployment rate is currently at a record low of 4.7 per cent.

The analysis shows a lack of concern over China, a major export market for the Germany economy.

The Bundes­bank expects the German economy to expand by 1.7 per cent in 2015.

The outlook for the rest of the Eurozone is also fairly bright, with the Bundesbank pointing to a large reduction in the amount of debt of companies in Spain, Italy and France.

Other European countries and the International Monetary Fund have criticised Germany for the size of its current account surplus, the amount it exports more than it imports.

They argue it that Germany’s export-oriented economy is making it more difficult for other countries to compete, and urge it to loosen the purse strings, boost wages and reduce its competitiveness.

The Bundesbank’s president Jens Weidmann was appointed as chairman of the board of the Bank of International Settlements (BIS) – a bank for central banks.