The government of Germany has decided to increase its growth forecast figures for 2020 in a revised version whereby showing a “decline of less than 6% from a previous estimate of -6.3%”, according to Reuters report that claimed to have received the information from a “coalition source”.
Moreover, the source also stated that the German Minister of Economy, Peter Altmaier is likely to “present the revised outlook” in this week. Germany experienced a record economic contraction of “9.7%” in its Q2 with “consumer spending, company investments and exports” coming to a standstill at the peak of COVID-19 pandemic. However, looking at the “recent economic data” hope has been rekindled as the largest economy of Europe has set on the path of “strong recovery”.
In August, the improvement in business moral left expectations behind as both “manufacturing and services” gathered momentum. Demand for exports had “rebounded for a second month running in June”, while there are expectations of expansion in the “coming three months”. In fact, the German economic outlook seems “brighter than for most other G7 countries” other than the U.S.
The above mentioned revision of Germany’s GDP forecast will reflect on its “tax revenues estimate” which is due for September 10 along with the country’s budget scheduled to be present by the “end of September”. Reuters further added that as per sources:
“German Finance Minister Olaf Scholz will ask parliament to increase new borrowing by a further 62.5 billion euros ($74.33 billion) to a record 218.5 billion this year for measures to boost recovery from the coronavirus pandemic”.
This indicates that the largest European economy an “austerity champion” is likely to become “one of the biggest spenders” to join in the zone’s effort of rebounding from the pandemic.
References:
reuters.com
Moreover, the source also stated that the German Minister of Economy, Peter Altmaier is likely to “present the revised outlook” in this week. Germany experienced a record economic contraction of “9.7%” in its Q2 with “consumer spending, company investments and exports” coming to a standstill at the peak of COVID-19 pandemic. However, looking at the “recent economic data” hope has been rekindled as the largest economy of Europe has set on the path of “strong recovery”.
In August, the improvement in business moral left expectations behind as both “manufacturing and services” gathered momentum. Demand for exports had “rebounded for a second month running in June”, while there are expectations of expansion in the “coming three months”. In fact, the German economic outlook seems “brighter than for most other G7 countries” other than the U.S.
The above mentioned revision of Germany’s GDP forecast will reflect on its “tax revenues estimate” which is due for September 10 along with the country’s budget scheduled to be present by the “end of September”. Reuters further added that as per sources:
“German Finance Minister Olaf Scholz will ask parliament to increase new borrowing by a further 62.5 billion euros ($74.33 billion) to a record 218.5 billion this year for measures to boost recovery from the coronavirus pandemic”.
This indicates that the largest European economy an “austerity champion” is likely to become “one of the biggest spenders” to join in the zone’s effort of rebounding from the pandemic.
References:
reuters.com
