Germany faces period of protracted stagnation

Frankfurt - Germany's economy is unlikely to regain momentum this year after it barely grew in the three months ended September, the central bank said on Monday.

"Dampened business expectations and stagnant orders point to a weak economic development in Germany at least until the end of 2014," the Bundesbank said in its monthly report.

The Frankfurt-based bank said the recent depreciation of the euro and the sharp drop in oil prices will help growth in Europe's biggest economy to pick up gradually next year.

The Bundesbank sees private consumption as being the main driver of economic growth thanks to the solid performance of the labour market, a steady flow of immigration into the country and significant wage increases.

The German economy grew 0.1% in the three months to the end of September compared with a 0.1% contraction in the second quarter, the statistics office Destatis said on Friday.

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