|
 |
|
|
|
|
|
|
Tuesday April 26, 11:28
|
|
Germany’s economic growth off track
(by Helen Snow)
|
|
Germany’s economy growth will be cut this year in half, according to Germany’s six leading economic institutes forecast.
Germany’s economy will not manage to follow the forecast growth level of 1.5% but expand only by 0.7% in 2005, the institutes said today. Such a result is the worst amid 25 EU’s nations this year.
According to the Ifo institute’s report released yesterday, business confidence dropped to a 19-month low in April. The unemployment rate rose to 12% in March, bringing more doubts for recovery prospects for consumer spending power.
Germany’s economic downfall has caused a crack in voter support for Chancellor Gerhard Schroeder’s Social Democratic Party this year, as polls showed.
Germany’s benchmark DAX 30 stock index dropped 30.44 points, or 0.7%, to 4216.52 at 12:19 p.m. in Frankfurt.
The growth gap and resulting difference in interest rates have had impact on the currency market this year as the euro was down 0.2% at $1.2979 at 11:50 a.m. in Frankfurt.
Moreover, in such circumstances worsened by increased oil prices, Germany may again fail to meet the European Union’s requirement for limit of 3 percent of gross domestic product this year and next.
|
|
All market news
|
|
|
|
|
|
|
|
|
|
 KEYWORD SEARCH |
|
|
|
|
|
SUBSCRIPTION |
|
|
|
|
|