German economy sluggish throughout 2014: Report

German economy sluggish throughout 2014: Report

Mon Nov 17, 2014 2:22PM GMT

Germany’s Central Bank says Europe’s biggest economy will witness a “sluggish course” of development for the rest of the year.

The Deutsche Bundesbank made the prediction on Monday in its monthly report.

“The further deterioration in economic expectations and the stagnation of new orders point to a rather sluggish course of economic development in Germany until at least the end of 2014,” the Bundesbank said.

During the third quarter of the year, Germany’s gross domestic product (GDP) grew by 0.1 percent, after contracting by 0.1 percent in the preceding three months.

“No marked recovery in important euro-area partner countries has yet materialized,” the report said.

The report comes as the German government has been under pressure by European partners to boost investment in order to stimulate the economies of Berlin and the eurozone.

“An additional, debt-financed economic package…would not be constructive for the economic situation in Germany, or the comparatively meager stimuli it is expected to give to the rest of the eurozone,” the bank added in its report.

Major economic think tanks have recently downgraded their growth forecasts for the leading European economy.

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