German govt ups 2007 GDP growth forecast to 2.3 pct, sees 2008 at 2.4 pct UPDATE |
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Wed, 25 Apr 2007 12:30
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(Updates with more forecasts)BERLIN (Thomson Financial) - The German government said it raised its 2007 GDP growth forecast to 2.3 pct from 1.7 pct previously and estimated next year's growth rate at 2.4 pct.A statement from the economy ministry said the average jobless figure is estimated to fall below 3.5 mln next year, with the number of people employed increasing by around 470,000 and another 310,000 next year.'The number (3.5 mln) will be the lowest in more than 10 years,' Economy Minister Michael Glos said.The average jobless totalled 4.48 mln in 2006.The ministry said the 2007-2008 growth estimates were revised upwards as the upswing in the world economy remains 'robust' even though it has slowed down somewhat compared with 2006.In addition to continuing positive effects from exports, it expects private household consumption to make a significant contribution to domestic GDP growth next year.It said private consumption is set to rise to 1.7 pct in 2008 after stagnating at an expected 0.8 pct in 2007, unchanged from 2006.Domestic investment is expected to grow 6.2 pct this year and 4.1 pct next year from 5.6 pct in 2006.Export growth is expected to slow to 8.5 pct and 8.3 pct in 2007 and 2008, from 12.5 pct in 2006, with import growth also decelerating to 7.7 pct this year and 8.1 pct next year, from 11.1 pct in 2006.Glos said the budget consolidation was progressing faster than initially expected.'After a successful consolidation of the budget, we need to consider tax cuts and not spending programmes,' he said.patrizia.kokot@thomson.compk/mog/jlw/mog/jlwCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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THOMSON FINANCIAL NEWS TOP STORIES Macroeconomics 15:30 BST 