Bundesbank: Nagel calls for reforms - despite better economic outlook
The German economy is recovering faster than thought, according to Bundesbank chief Joachim Nagel. However, Germany should not rest on its laurels. He is calling for structural reforms.
Berlin - The Bundesbank appears more confident in the German economy than it did in the summer, according to its chief, Joachim Nagel, who spoke at a conference of the Latvian Central Bank in Riga on Wednesday. Nagel stated that the bank's interim assessments indicate a stronger recovery than anticipated in the summer. When the bank presented its Germany forecast in June, its experts projected calendar-adjusted real gross domestic product (GDP) to grow by 0.5 percent this year and by 0.8 percent in 2027.
While this recent outlook is encouraging, Nagel emphasized that it should not lead to complacency. He noted that fiscal policy is unlikely to significantly boost growth potential, with additional public investments in infrastructure expected to strengthen the production capacity only marginally. Additionally, Nagel expects additional defense spending to make a positive contribution to production potential in the foreseeable future.
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