FX& CFD TIRDZNIECĪBAI IR AUGSTS RISKA LĪMENIS
Bundesbank downgraded its growth forecasts for Germany. The economic growth is expected to be 1.7% in 2016, down from the previous estimate of 1.8%, and 1.4% in 2017, down from the previous estimate of 1.7%.
"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," Bundesbank President Jens Weidmann said.
Inflation is expected to be 0.2% in 2016, down from the previous estimate of 1.1%, and 1.5% in 2017, down from the previous estimate of 2.0%.
Inflation forecasts were downgraded due to low inflation rate for services and industrial goods.
"Fluctuations in the price of crude oil continue to present a risk, particularly for the price projection, but on the whole appear balanced, as do the risks to economic growth," Weidmann noted.
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