EMB Buba board member Fabritius sees German 2007 adjusted GDP growth 1.75 pct |
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Mon, 22 Jan 2007 17:17
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DUESSELDORF, Germany (AFX) - German GDP growth is expected to come in at 1.75 pct this year in calendar-adjusted terms, down from a 2.7 pct growth rate in 2006, Bundesbank executive board member Hans Georg Fabritius said.'For 2007 we expect calendar-adjusted growth in real GDP of 1.75 pct, whereby the German economy remains slightly above the potential rate,' Fabritius said in a speech in Duesseldorf.In December, the Bundesbank said it was forecasting 2007 GDP growth of around 1.5 pct, although it did not specify whether this was in adjusted or unadjusted terms.According to official data released earlier this month, German GDP grew 2.5 pct in 2006 compared with 2005 in unadjusted terms, and was 2.7 pct higher on a calendar-adjusted basis.Fabritius also said that euro zone inflation risks are clearly on the upside and that the European Central Bank must continue to monitor inflation risks very closely to ensure price stability.'As a central banker, let me add that, notwithstanding the short-term calming in oil price developments, the risks to price stability are clearly on the upside,' he said.He also noted that these risks include the possibility of stronger-than-anticipated wage increases and rapid money growth in an environment of already ample liquidity.He said both the economic and monetary analyses suggest that inflation developments should be 'monitored very closely so that risks to price stability over the medium term do not materialise'.'Acting in a firm and timely manner therefore remains necessary,' he added.newsdesk@afxnews.comjfb/ambCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Macroeconomics highlights to 15:30 GMT 