Germany Lowers Estimate on Economic Growth
The German economy is growing more slowly than previously thought, the government said Sunday, as recessions in Asia, Latin America and Russia reduce exports.
Europe’s biggest economy is likely to expand 1.5% in 1999 rather than the 2% previously forecast, the government said. The economy expanded 2.8% in 1998.
Exports to Latin America, Asia and Russia, which buy almost a fifth of German exports, have plunged in recent months. The European Central Bank cut interest rates earlier this month, a move that economists said will lead to higher investment and spending, spurring stronger economic growth next year.
Company executives expect business conditions to improve, according to a survey released Sunday. The Ifo Economic Institute, which surveys about 7,000 companies each month, said many executives believe the decline in exports has passed and there will be a recovery in the next six months.
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