Why Germany’s ETF Is Forecast for Growth
September 10th at 3:00pm by Tom Lydon
Germany is looking at a better-than-expected year of growth, and the country is expected to exceed expectations that were forecast in June. It could deliver a nice push to the country’s related exchange traded fund (ETF).
GDP returned to a pattern of growth in the second quarter for Germany, Europe’s largest economy. Rainer Buergin for Bloomberg reports that the Kiel Institute for World Economics is calling for a 4.9% in shrinkage in 2009 for the country. The GDP is anticipated to grow 1% in 2010.
Indicators are improving and many are at low levels, with strong economic supporters to suggest the upward momentum. The European Central Bank won’t need to lower its main lending rate to 0.75%, the Kiel institute said, revising a June prediction. A key interest rate of 1% through 2010 should prevail.
- iShares MSCI Germany Index (NYSEArca:EWG): up 15.3% year-to-date
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