15 October 2001, 09:54  German govt cuts 2002 growth forecast to 1.5 pct vs 2.25 pct - report

FRANKFURT (AFX) - The German finance ministry has cut its growth forecast for 2002 to 1.5 pct from the current official forecast of 2.25 pct, Handelsblatt reported, citing internal ministry figures. The paper added that even before the Sept 11 terror attacks in the US, the ministry had reduced its 2001 growth forecast to 1.0 pct from 2.0 pct. It is now probable that a ministerial working committee will agree on the lower figures in the coming weeks, the paper said. The government is encountering difficulties making forecasts for growth this year, as no one is aware how badly the US military attacks will affect investment and consumption in the German economy, it added.

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