German GDP Forecast Expects Strong Expansion

06 July 2006

Germany's soccer team may have been knocked out of the World Cup, but its citizens can take some comfort that their economic recovery is moving apace and forecast to record its highest growth rate in six years.

Berlin think tank DIW expects real GDP growth of 1.8% for this year but a slowdown to 1.4% for 2007 - a figure, nevertheless, higher than the forecast of 1.2% by the country's top economic institutes.

DIW attributes Germany's solid growth this year to a stronger domestic demand on top of robust exports.

Its report says: "The German economy is significantly gaining momentum this year ... The economic expansion is broadening, investments and consumption are contributing to economic growth to the same extent."

Data sourced from Wall Street Journal Online; additional content by WARC staff