Government sharply lowers growth projection

29th April 2005, Comments 0 comments

29 April 2005, BERLIN - The German government has sharply lowered its economic growth projection for 2005 to just 1.0 percent, from the previous 1.6 percent, Economics Minister Wolfgang Clement said on Friday.

29 April 2005

BERLIN - The German government has sharply lowered its economic growth projection for 2005 to just 1.0 percent, from the previous 1.6 percent, Economics Minister Wolfgang Clement said on Friday.

Clement said that Berlin however expected the German economy to rebound in 2006 with a growth rate of 1.6 percent.

The 2005 figure cited by Clement is more optimistic than that given by the country's six leading economic research institutes early in the week, when they predicted only 0.7 percent growth for Europe's largest economy this year.

Clement dismissed the institutes' projection as being too pessimistic and rejected any notion of a recession.

Analysts noted that the lowered projection by Berlin could pose new strains on the already strapped federal budget. The projection serves as the foundation for calculating expected tax revenues.

DPA

Subject: German news

0 Comments To This Article