The German’s closing Consumer Price Index (CPI) rose by 1.5% in May year-on-year, according to reports from the German statistical body Destatis released on Wednesday.
Economists and analysts forecasts no changed would be made, indicated from the previous month’s preliminary reading. The German’s CPI increased in May, after dropping by 0.5% last month.
Germany’s Gross domestic product (GDP) aligned with the market forecast by an increase of 0.1 percent quarter-on-quarter in the first three months of the year, compared to the fall of 0.7 percent last year.
Following the sluggish growth in the country’s economic activities in the second and third quarter last year, the restraining growth were not enough to balance the high drop in exports and equipment investment, according to reports released.
Reports indicate that the slowdown was temporary and that there was stabilization in the first quarter of this year.
According to EC, the GDP is expected to advance by 0.4 this year and by 1.8% in the following year 2014. “Export expectations have brightened noticeably, although external orders for industrial goods have dropped back down again,” EC said.
Germany’s economy growth is projected to toughen and grow stronger gradually this year and increase by 2 percent by 2014, according to the organization for economic cooperation and development (OECD).
“While subdued activity in the euro area will hold back the recovery, the pickup of world trade is projected to increase export growth. Wage and employment gains as well as low interest rates will support domestic demand, narrowing the current account surplus to 6% of GDP. The unemployment rates is expected to fall somewhat further, while consumer price inflation may rise to 2% in 2014”, the OECD said.
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