|
(CEP News) Frankfurt - Inflation in Germany could turn negative by the middle of next year, with unemployment reaching 8.1% and GDP to contract 0.8% in 2009, the Bundesbank said on Friday.
In its semi-annual macroeconomic projections released earlier in the day, the German central bank is expecting the economy to contract by 0.8% next year after growing 1.6% in 2008, led in part by weakening exports, which are expected to fall by 0.5% over the same period. "The continuing adverse factors going into next year are to be rated as severe," the Bundesbank said. "The German economy is not expected to pick up again until the projected global economic upturn in 2010." The Bundesbank also forecasts the German savings rate to rise to 12% next year. Turning to inflation, the central bank is calling for the consumer price index to possibly contract in the middle of 2009. However, the Bundesbank added that the possibility of deflation could be "ruled out" for now. The economic projections assume the euro at 1.27 USD in 2009, the Bundesbank said, as well as global growth at a rate of less than 2% over the same period. Written by CEP News European Staff in Frankfurt,
This email address is being protected from spam bots, you need Javascript enabled to view it
, edited by Nancy Girgis,
This email address is being protected from spam bots, you need Javascript enabled to view it
CEP Newswires - CEP News © 2008. All Rights Reserved. www.economicnews.ca The Copying, Broadcast, Republication or Redistribution of CEP News Content is Expressly Prohibited Without the Prior Written Consent of CEP News. A copy of CEP News disclaimer can be found at http://www.economicnews.ca/cepnews/wire/disclaimer. |
