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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