German economy surviving on exports

17th November 2003, Comments 0 comments

17 November 2003 , FRANKFURT - Germany's economy is remaining afloat only thanks to strong export performance, with scarcely any help coming from the domestic sector and investment activity remaining weak, the Bundesbank said Monday.

17 November 2003

FRANKFURT - Germany's economy is remaining afloat only thanks to strong export performance, with scarcely any help coming from the domestic sector and investment activity remaining weak, the Bundesbank said Monday.

In its monthly report for November, the German central bank said it was exclusively thanks to the 4.5 percent third-quarter rise in exports that the country's gross domestic product (GDP) posted its thin 0.2 percent gain.

"At home there are scarcely any growth impulses to be seen," the Bundesbank said. Investment activity remained weak, and in view of plants working at undercapacity there was hardly any need for industry to be expanding its production, the bank added.

Retail turnover continued to lag behind its level from last spring and a year ago, the Bundesbank report said. It noted that steady job reductions and the debate about cutbacks in the social welfare system had hurt private consumption.

As a result, with disposable income remaining steady, private savings were again rising in Germany, it said.

What remained was the foreign trade sector of the economy as the decisive factor in any economic turnaround. New orders from abroad were expected to result in a further rise in exports in the upcoming months, the Bundesbank said.


DPA

Subject: German news



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