Germany - Bundesbank publishes macroeconomic prognoses - January 01, 2017

According to a Bundesbank projection Germany's economy is continuing to move on a sound upward path. However, employment will grow less dynamically as a result of demographic change, whereby the pool of people available to work will shrink, resulting in a dampening effect on consumption growth. The bank expects mounting labour market bottlenecks that will be a catalyst for stronger rises in wages and income. The projection foresees (over the period 2015-2018) an increase of the gross wages between 2.4 and 2.9%.

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