German long-term prospects brighten

Germany’s Bundesbank formally raised its assessment of the country’s long-term economic potential, 22 October 2007, in a vote of confidence that could affect future eurozone interest rate decisions.

The revision to Germany’s 'potential growth' rate – the pace at which the economy can expand without creating excessive inflationary pressures – reflected the structural changes in Europe’s largest economy, especially in labour markets.

Germany: Deutsche Bundesbank http://www.bundesbank.de/index.en.php

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