11 July 2005, 13:04  German GDP growth slowing to 0.2 pct in the second quarter due to stubbornly weak demand

The Deutsche Institut fuer Wirtschaftsforschung (DIW), one of the six leading institutes for economic research in Germany, said it sees German GDP growth slowing to 0.2 pct in the second quarter due to stubbornly weak demand. It said second quarter growth is likely carried primarily by an expected boost to the construction industry following lost production in the first quarter due to unseasonably cold weather. Also, stable demand for intermediate goods will help carry growth. But DIW said it sees the retail and the hotel and restaurant industries slump, as the current patch of weak consumer demand "does not seem to have been overcome yet". In the first quarter, GDP rose a seasonally, price- and calendar-adjusted 1.0 pct from the fourth quarter, while unadjusted year-on year GDP growth in the first quarter was zero.

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