Germany’s Bundesbank on Monday reiterated its opposition to increasing investment to boost the German economy as well as the euro area and said the biggest Eurozone economy is likely to register only modest growth in the final three months of the year.
In its monthly report, the bank said any additional debt-financed economic stimulus package would do little to support the economic situation in Germany. Further, the comparatively small stimuli it can provide also would not be of much benefit to the Eurozone, it added.
During the current uncertain economic situation, it was appropriate to continue the fiscal policy reforms to boost the economy, the Bundesbank said.
The German economy narrowly avoided a recession in the third quarter, expanding 0.1 percent from the previous three months. The continued weakness in business expectations and stagnation in new orders suggest a sluggish economic situation until the end of this year, the bank said.
Elsewhere today, results of a survey by the Cologne Institute of Economic Research (IW) showed that German companies’ business expectations for next year deteriorated sharply and they are viewing investment and hiring staff with more caution.
The material has been provided by InstaForex Company – www.instaforex.com