Berlin, Sept 21 (Reuters) - Undeterred by global uncertainties due to an economic slowdown in China, German growth is expected to continue in the second half of the year on rising domestic consumption and growing exports, the Bundesbank said on Monday.
Europe’s biggest economy further benefited from dwindling oil and energy prices, compensating for an overall considerable increase in import and consumer prices, the German central bank said in its monthly report.
While the Bundesbank expects German growth to be supported by continuously high employment rates which peaked to an all-year-high in July, the current influx of refugees is estimated to effect Germany’s labour market.
Labour Minister Andrea Nahles said on Sunday that her ministry expects higher unemployment rates for next year amid the inflow of refugees seeking work.
The Bundesbank bank expects the German economy to expand by 1.7 percent in 2015 while Berlin predicts that domestic demand and foreign trade will drive a 1.8 percent expansion this year. (Reporting by Tina Bellon; Editing by Michael Nienaber)