Germany expected to cut 2009 economic growth forecast
Monday, 22 September 2008
BERLIN, Sept 21 (Internet): The German government Saturday downplayed as only "speculation" a report in a German weekly that Europe's biggest economy would slash its 2009 growth forecast to 0.5 per cent from the previous 1.2 per cent estimate.
"There is not yet an official forecast. It is only speculation," an economy ministry spokesman told newsmen in commenting on a Der Spiegel report, which cited ministry experts.
The government will publish its next economic forecasts on October 16.
Meanwhile, the European Central Bank's chief economist, Juergen Stark, predicted that Germany would go through "a period of weaker economic growth, the duration of which will depend on the extent of the repercussions from the (financial) shockwave coming from the United States," he said in an interview to appear in the Sunday newspaper Welt am Sonntag.
Stark however added that he did not see "any potential for a recession," either in Germany or in the global economy, nor any signs of deflation in the Eurozone.
Last month, Germany's Economy Minister Michael Glos said he could not rule out revising down the economic growth forecast for 2009, given the current "difficult" situation, as Germans said they were more pessimistic about the health of their economy.
Nevertheless, the government maintained Friday its estimate of 1.7 per cent economic growth this year, despite the doubts of many economists who point to a slowdown in exports and higher inflation.
"There is not yet an official forecast. It is only speculation," an economy ministry spokesman told newsmen in commenting on a Der Spiegel report, which cited ministry experts.
The government will publish its next economic forecasts on October 16.
Meanwhile, the European Central Bank's chief economist, Juergen Stark, predicted that Germany would go through "a period of weaker economic growth, the duration of which will depend on the extent of the repercussions from the (financial) shockwave coming from the United States," he said in an interview to appear in the Sunday newspaper Welt am Sonntag.
Stark however added that he did not see "any potential for a recession," either in Germany or in the global economy, nor any signs of deflation in the Eurozone.
Last month, Germany's Economy Minister Michael Glos said he could not rule out revising down the economic growth forecast for 2009, given the current "difficult" situation, as Germans said they were more pessimistic about the health of their economy.
Nevertheless, the government maintained Friday its estimate of 1.7 per cent economic growth this year, despite the doubts of many economists who point to a slowdown in exports and higher inflation.