- Jens Weidmann, Bundesbank President
The German Bundesbank has revised Germany's economic growth outlook for the next year downwards to 1%, exacerbating concerns the Euro zone's economy will continue to struggle. Germany's central bank now expects the nation's economy will grow 1.4% this year, 1% in 2015 and 1.6% in 2016. In contrast, in June, it had projected growth of 1.9% this year, 2% next year and 1.8% in 2016. The European Commission also lowered its forecast for German economic growth next year from 2% of GDP to just 1.1%. Hopes earlier this year that Germany would lead the 18-nation currency bloc to recovery have waned, after signs that momentum in the region's economic growth engine have been disappearing. The Bundesbank also slashed its projections for inflation to 1.1% next year, and 1.8% in 2016. Inflation in the Euro area as a whole dropped to 0.3% in the year to November, well below the European Central Bank's goal of below but close to 2%.
Meanwhile, German factory orders unexpectedly rose in October, offering a positive sign amid recent bleak data. Factory orders jumped 2.5% on month in October, the German Economics Ministry said, following the upwardly revised 1.1% gain recorded in the previous month. On an annual basis, factory orders increased 2.4% in the month under review, compared with the predictions of zero growth.
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