Germany’s economy will grow by 3 per cent this year, according to a sharply upwardly revised Bundesbank forecast issued as investors pushed the cost of borrowing by its government towards fresh record lows.
The economic recovery in Europe’s largest economy was increasingly generating its own momentum, the country’s central bank said yesterday, with other eurozone countries benefiting from the ripple effects. In June, the Bundesbank had forecast almost 2 per cent growth in 2010.
The upbeat prognosis underscored policymakers’ confidence that the eurozone would avoid falling back into recession.
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