Germany's Steinbrueck says GDP growth likely quickened despite market turbulence |
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Sun, 14 Oct 2007 20:53
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FRANKFURT (Thomson Financial) - German finance minister Peer Steinbrueck said there are 'many indications' that German economic growth picked up in the third quarter from the second quarter, showing the country's economy weathered turbulence in financial markets, according to Frankfurter Allgemeine Zeitung.Economic growth in the third quarter was driven by corporate investments, indicating companies are having no trouble securing financing, Steinbrueck told the daily newspaper in an interview.'Besides, I think it is -- without wanting to seem cynical -- a welcome effect of the financial market turbulence that exaggeration and excess were corrected and that risks are finally being priced in again,' he said.Germany's federal statistics office is due to release GDP growth figures for the third quarter on Nov 14.And while the financial market situation is 'still serious', an overall grave effect on Germany's real economy is 'not discernable', Steinbrueck said.'There are still bottlenecks on money markets,' he said, adding he expects further tension on mortgage markets 'because payment and interest on contracts signed two years ago are only due in 2008'.'But all experts tell me that the while the financial crisis will leave certain traces, the continued positive economic fundamental data will not be clouded,' he said.maria.sheahan@thomson.commas/akCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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