Bundesbank growth downgrade angers Berlin

22nd October 2004, Comments 0 comments

22 October 2004 , BERLIN - A German spokesman on Friday criticised as "unparalleled" the Bundesbank's apparent confirmation of reports that economic growth prospects are being downgraded in advance of an official announcement next week. German GDP will grow by about 1.5 percent in 2005, says the Bundesbank according to a report in the Financial Times Deutschland, the German edition of the international paper. Economics Minister Wolfgang Clement has until now predicted German GDP growth next year of 1.7 to

22 October 2004  

BERLIN - A German spokesman on Friday criticised as "unparalleled" the Bundesbank's apparent confirmation of reports that economic growth prospects are being downgraded in advance of an official announcement next week.

German GDP will grow by about 1.5 percent in 2005, says the Bundesbank according to a report in the Financial Times Deutschland, the German edition of the international paper.
Economics Minister Wolfgang Clement has until now predicted German GDP growth next year of 1.7 to 1.8 percent.

The government is widely expected to downgrade this projection on Monday but Chancellor Gerhard Schroeder's spokesman, Bela Anda, said the Bundesbank had never before jumped the gun and released such data before Berlin did.

Lower growth would be bad news for Chancellor Schroeder who is struggling to cut unemployment stuck at over 10 per cent and who hopes a strong economy in 2005 will pave his way to re-election the following year.

DPA

Subject: German news

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