German consumers will not boost economic growth in Europe's largest economy in 2004 because of continuing job worries, the head of the GfK market research firm was quoted as saying in a newspaper on Thursday. "Consumption will not function as a driver for growth this year," GfK chief Klaus Wuebbenhorst told the Berliner Zeitung daily. But Wuebbenhorst said Germany could do more to boost private consumption, which accounts for about 60 percent of the economy, criticising Wednesday's decision by the country's highest court to reject a bid to allow shops to extend opening hours. After three years of economic stagnation, the government expects to see Germany's economy grow by 1.5 percent this year. Economy Minister Wolfgang Clement said on Thursday recent data meant this forecast could even be surpassed. Wuebbenhorst said he was disappointed by the Federal Constitutional Court's ruling to uphold existing legislation that prevents retail stores opening on Sundays and holidays.
"I'd like to have seen a further extension to shop opening times," he said. "Job worries are detrimental to consumption. But when you have a job, the criterion of being able to shop when you want is definitely very important." Although Germany posted unexpectedly high quarter-on-quarter growth of 0.4 percent in the first three months of 2004, private consumption is still weak after two straight years of decline. German seasonally adjusted unemployment has risen steadily this year, and economic growth has been driven largely by surging global demand for German goods.///www.reuetrs.com