Weaker euro boosting German economy at much faster pace than expected
FRANKFURT—The German economy has moved out of its soft patch at a much faster pace than previously expected aided by a weaker euro, leading to an improved outlook for Europe’s largest economy, the country’s central bank said in its monthly bulletin on Monday.
“The German economy will continue to benefit from the economic upturn in the current year. In the short term, the pickup will be driven mainly by private consumption,” the bank said. Exporters should also benefit from a weaker euro, which has fallen sharply against the U.S. dollar in recent months.
“Following extended periods of sluggish growth during 2014, economic activity in Germany regained considerable momentum even before the turn of the year,” the bank said. Given that the positive mood swing in business sentiment only started in November, it was “remarkable how quickly and in particular, how strongly economic growth in Germany picked up toward the end of last year,” the Bundesbank said.
