23 April 2001, 17:50  German BDI Group Sees Growth of 2.5% `At the Most' in 2001

Hanover, April 23 (Bloomberg) -- German economic growth will fall to between 2percent and 2.5 percent ``at the most'' in 2001 as a slowing U.S. economy takes itstoll on exports, the BDI association of German industry said. Exports will rise about 10 percent this year, the association predicted. The BDIrepresents about 82,000 German companies employing 11 million workers. ``The end of the 10-year boom in the U.S. is having an effect on us -- at least interms of business expectations,'' said Michael Rogowski, the group's president,speaking to journalists at a trade fair in Hanover. ``However I am firmly convinced thatwe're not moving into a recession.'' Germany's Ifo economic research institute's index, the most widely watched gaugeof executive confidence, showed companies were more pessimistic last month asslowing growth at home and abroad sliced profits. The index fell to 93.9 from 94.9 inFebruary. ``Sentiment among German companies has become noticeably clouded,'' Rogowskisaid. ``Companies judge their business conditions far less favorably now than theydid in the middle of 2000. The external risks to our economy have increased.'' Rogowski said he expects the euro's rise against the dollar this year to be ``limited.''The currency has climbed 3 percent in the past three weeks and was recentlytrading at 90.25 U.S. cents. Germany's six leading research institutes this month lowered their forecast foreconomic growth this year. The world's third- largest economy will expand 2.1percent this year, the institutes said, down from an earlier estimate of 2.7 percent.

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