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Germany’s ‘wise men’ revise inflation forecasts lower

Germany’s council of economic experts, popularly known as ‘wise men’, published a sharp downward revision of inflation forecasts, coupled with a slight downward revision of GDP forecasts.

As per latest forecasts, the inflation rate would average 0.3% in 2016. That is a drop of 0.9 percentage points from the previous forecast. Inflation would accelerate significantly in 2017 to 1.4%, the experts said.

Meanwhile, the council put GDP growth at 1.5% in the current year, just below the 1.6% projection issued last November. GDP forecast for 2016 is left unrevised at 1.6%.

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