Bundesbank Semi-Annual Review: German GDP forecasts raised for 2016 & 2017

On Friday, the German central bank, Bundesbank (Buba) published its semi-annual review on the German economic outlook for 2016 and 2017.

Key Highlights:

Both raised to +1.8%

Cuts inflation f/cast to 1.4% from 1.5%, 2018 1.7%, 2019 1.9%

German budget to generate surpluses for years without new measures

Govt debt ration could fall to 60% of GDP

Sees increasing labor market bottlenecks, limiting jobs growth