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23 September 2004

EZA 634: German Economy




German economy – catching up on growth, trailing on inflation
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SummaryGDP growth at 2% annual rate sustained through 2004 and probably 2005 Business upbeat on reforms, but uncertain on global recovery Shift from net exports to domestic demand hampered by weak job prospects No second round effects so far from higher oil prices Monetary policy stimulus reduced by low inflation, fiscal policy neutral

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© Graham Bishop

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