German central bank with its latest report 3 June 2016
- cuts 2016 GDP forecast to 1.7% vs 1.8% prev in Dec
- 2017 GDP forecast 1.4% vs 1.7% prev
- 2018 Growth 1.6% initial forecast
- cuts 2016 inflation forecast to 0.2% vs 1.1% prev in Dec
- 2017 1.5% vs 2.0% prev
- 20181.7% initial forecast
In addition though they also say the underlying trend is "fairly robust"
"The German economy's underlying cyclical trend is fairly robust. Its main driver is buoyant domestic demand, which is being bolstered by the favourable situation in the labour market and by rising household income."
According to the projection, this year's economic growth is being additionally boosted by purchasing power gains resulting from renewed falls in crude oil prices and from an expansionary fiscal policy. Foreign business, by contrast, is receiving only weak stimuli on account of the sluggish growth in world trade.
"In the coming years, however, it is likely that exports will gain more traction and compensate for domestic demand, growth of which is expected to tail off somewhat,"
Full projections here
