- Bundesbank
German Bundesbank poured some cold water on recent positive fundamentals, by saying that Europe's number one economy is unlikely to regain steam this year following a tepid growth in the third quarter, given subdued global demand and lacklustre recovery in most European countries. Europe's economy is slowing down, and there is a threat of both a new recession and deflation across the region. Germany's economy grew just 0.1% in the third quarter from the second quarter, when the economy contracted 0.1% in the three months through June. Nevertheless, the Frankfurt-based bank believed that the recent depreciation of the Euro as well as the sharp drop in oil prices will help growth in Europe‘s biggest economy to pick up gradually next year. The Bundesbank sees private consumption as being the main catalyst of economic growth thanks to the strong performance of the labour market, a steady flow of immigration into the country and significant wage increases.
Meanwhile, Bank of England policymaker Martin Weale said recent numbers showed that the economic situation in the single currency zone was less worrying than some people have feared. The Euro zone economy grew 0.2% in the September quarter. Weale remained quite optimistic over the foreseeable future, saying he was "looking forward to a positive business year in 2015".
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