German think-tanks raise ’07 economic growth forecast
Friday, 19 October 2007
FRANKFURT, Oct 18 (AFP): Four German economic think-tanks have raised their growth forecast for this year to 2.6 per cent but the government said yesterday there were now greater risks to progress due to the strong euro.
The think-tanks' estimate generally serves as a basis for the government's own outlook for growth in the biggest Eurozone economy and represented an increase from the previous figure of 2.4 per cent, the Financial Times Deutschland said yesterday.
But the economy ministry said later that risks to growth had increased as the euro gained in value against other major currencies, threatening exports, even though the country's economic fundamentals remained solid.
"As a whole, risks to the overall trend have increased noticeably," the ministry said in a study.
"External perspectives are not as favourable, given moderate growth expected in industrialised countries and a euro that is still strong," it added.
That view got a faint echo from Hermann Remsperger, a board member of the German central bank, who told reporters: "Our forecast for 2008 is roughly adjusted downward.
The think-tanks' estimate generally serves as a basis for the government's own outlook for growth in the biggest Eurozone economy and represented an increase from the previous figure of 2.4 per cent, the Financial Times Deutschland said yesterday.
But the economy ministry said later that risks to growth had increased as the euro gained in value against other major currencies, threatening exports, even though the country's economic fundamentals remained solid.
"As a whole, risks to the overall trend have increased noticeably," the ministry said in a study.
"External perspectives are not as favourable, given moderate growth expected in industrialised countries and a euro that is still strong," it added.
That view got a faint echo from Hermann Remsperger, a board member of the German central bank, who told reporters: "Our forecast for 2008 is roughly adjusted downward.