Germany economy set for 0.4% third-quarter growth – institute
31 August 2011 20:27 [Source: ICIS news]
LONDON (ICIS)--?xml:namespace>Germany’s economy will likely grow by 0.4% in the third quarter from the second quarter, partly due to an improvement in building and construction over the summer months, a research institute said on Wednesday.
The increase would come after Germany’s weak 0.1% GDP growth in the second quarter from the first.
DIW Berlin said while Europe’s largest economy will continue growing, “the time of the rapid upswing is over”.
DIW economics expert Ferdinand Fichtner said the turbulence on stock markets contributed to uncertainty among consumers.
However, the stock market declines, while considerable, have to be compared against the strong increases in share prices over the past two years, he said.
“The turbulence is no reason for panic,” he added.
For the full 12 months of 2011, DIW expects Germany’s GDP growth to come in at around 3.0% year on year - in line with recent forecasts by other institutes and by Germany’s central bank, the Bundesbank.
“For the Germany economy [3.0%] is still a very decent number,” Fichtner added.
In Germany’s chemicals industry, producers trade group VCI has forecast 5.0% year-on-year growth in chemical production for 2011.
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