| Economic growth projections shrink in Germany |
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Predictions made by six leading and eminent economic institutes in Germany forecast growth of 1.5 percent in the year 2006 with just 0.7 percent increase this year. This is against the earlier projections, when IW announced an overall growth ranging between 1 to 1.5 percent for the current year.
The World’s third largest economy will witness a lowered growth rate to 0.75 per cent as projected by German’s leading institute, IW.
The industrial productivity reduced from February to March hitting the construction industry with the slashing to 0.8 percent from the previous month. The root cause for the downturn is the “severe winter” which plummeted the construction sector efficiency by 10.8 percent. Comparison analysis reflects that in between the February- March period, industrial outputs was lowered to 1.2 percent from the preceding December- January phase. However, it was 1.8 per cent higher than the February – March period of 2004.
Michael Huether, Director of IW, estimates that unemployment will not drop beyond an average of 4.7 million next year.
Energy production on the contrary scaled to 0.2 percent for the two months as disclosed by the Ministry.
Manufacturing sector also gave some sign of relief with an increase of 0.3 per cent in March as apposed to February.
The above figures are surely gloomy and depressing but the government isn’t. With the forecast revealing one percent growth for the year 2005 with another 0.6 percent increase in the next year, the legal ruling authorities are quiet optimistic. And “they “ being positive is surely IMPORTANT!
Posted
on : Fri, 13 May 2005 17:05 GMT | General News
By : Rob Davis
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