German growth to stay weak until 2030: report

3 April 2006

BERLIN – Germany’s economic growth is set to remain weak through the year 2030, a report by a Swiss consulting group said Monday.

Gross domestic product (GDP) in Germany will grow on average by 1.4 per cent a year through 2030, said the Prognos Institute report.

The main causes of sluggish growth are creation of too few new jobs, an ageing population and continued risks linked to financing the state social welfare system.

German GDP grew by just 0.9 per cent last year and the country is slowly emerging from almost five years of economic stagnation with growth expected to be between 1.5 per cent and 2 per cent in 2006.

DPA

Subject: German news