German Central Bank is Upbeat on Economy

21 February 2007

FRANKFURT: Germany's central bank Deutsche Bundesbank is optimistic about the upturn in the nation's economy and believes it can be sustained in the long term.

In addition, says the bank's monthly report, the world economy is in "one of the most expansive phases since the 1950s", noting the IMF's 5% global growth forecast this year.

The Bundesbank says the increase in purchase tax, which came into effect January 1, is likely to slow growth at the beginning of the year, but adds: "The German economy is solid. After a temporary, slight interruption, the upswing is likely to regain strength."

Data sourced from Wall Street Journal Online; additional content by WARC staff