The German economy is benefiting from the fact that the global economy, including the countries in the euro area, is regaining momentum following years of crisis-induced sluggishness. According to IMF forecasts, the global growth rate, which was 3.2% last year, will go up to 3.6% this year and 3.7% in 2018.
Tapering is suspected of triggering greater volatility and yield increases in those capital market segments that are targeted by monetary policy purchase programmes, with the impact of this then potentially spilling over to neighbouring market segments, too. Some market participants are already anticipating that asset purchases by the Eurosystem will be scaled back in 2018.