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German retail association raises sales forecast

Xinhua, September 21, 2016 Adjust font size:

German retail association raised its forecast for sales growth in 2016 on Wednesday, citing low interest rates and stable labor market as favorable factors that support private consumption in the current year.

"Retailers assess their position broadly positive," said Stefan Genth, Managing Director of the association HDE, in a statement.

The group expected retail sales to grow by 2.5 percent in 2016, 0.5 percentage points up from its previous forecast.

"The low interest rates and good employment favor the consumption," it added.

HDE's new forecast adds another sign that private consumption remains robust and will continue to drive the German economy this year.

Europe's biggest economy expanded by 0.7 percent in the first quarter and by 0.4 percent in the second. Domestic demand was the main driving force. Endit