According to a report by the German council of economic advisers
- Previous report forecast was 2.2%
- Q1 GDP to grow 0.6%, Q2 to grow 0.5%
- GDP to grow 1.8% in 2019
- German debt to drop below 60% of GDP by the end of 2019
- ECB starting exit from expansive policy is overdue
- Economy faces increased risks including outcome of Italian election, Brexit uncertainty, and US tariffs
- Spiral of protectionist measures would have clear negative impact on global economy
Still optimistic on growth forecasts, nothing new here. But again, the message they are hinting to the ECB is that it is time to normalise monetary policy.
here, and although the skew in the ECB is more towards being Germany-led, it may not be the case for the position of top dog when Draghi retires next year.