BERLIN (MNI) – Germany’s economic recovery will slow but a renewed
recession is not to be expected, the German Bank Association (BDB) said
in its latest monthly report, released Thursday.
“It is obvious that the recovery in Germany will not continue at
the previous record speed,” the BDB asserted. It noted that a large
share of the second quarter’s 2.2% GDP growth was due to catching up
effects in the construction sector where activity had been held back by
cold weather in the first quarter.
Moreover, there are increasing signals that global economic growth
will also weaken in the period ahead, the report stated. “The tailwind
for the heavily export-dependent German economy will abate perceptibly
in the coming months,” it reckoned.
The BDB also warned that the fiscal and economic crisis is not yet
fully overcome in Germany. “Its fallout will still be felt,” it said.
–Berlin bureau: +49-30-22620580; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,M$G$$$,M$$CR$,MGX$$$]
