The oil price has fallen around 25 percent and this has not been considered while calculating forecasts for next year’s economic growth in Germany as well as the eurozone.
President of Deutsche Bundesbank, Jens Weidmann, said in a recent interview that the growth may outpace current forecasts if things stand as per current situations and oil price remains at present low levels.
Jens is also a member of the European Central Bank’s governing council, and talking to Sunday newspaper Frankfurter Allgemeine Sonntagszeitung he added further that inflation will also be lower than the forecast in 2015 for Germany and eurozone as a whole.
He said the lower oil price will directly affect in lowering the prices of several goods due to lower cost of production and this will stimulate the economy of the region.
The German central bank earlier in December reduced growth forecast from 2 percent to 1 percent.
If believed to an article published in the weekly magazine Der Spiegel on Sunday, Germany is expecting a growth in its economy to get around 0.2 or 0.3 percentage point boost in 2015.
The magazine cited an internal note from the German Economics Ministry.
It is revealed the country will be paying around 12 billion euros, which is around 25 percent less compared to 2014, next year to the oil producing countries.
Meanwhile, Weidmann has opposed the plans of ECB to buy government bonds saying such measures are not required in stimulating the eurozone economy.
