BERLIN (MNI) – The German Finance Ministry has lowered its forecast
for the country’s public deficit this year to 3.7% of GDP from 4.5%,
according to a ministry paper dating from November 30 obtained by Market
News International.
As the main reason for the deficit reduction the ministry cited the
dynamic economic development.
However, it also noted in the paper that the deficit calculation
does not yet include the impact from the bad bank set up for the
state-owned Hypo Real Estate bank.
For the coming year, the ministry expects a public deficit of
around 3% of GDP. Norbert Barthle, the parliamentary budget speaker of
Chancellor Angela Merkel’s center-right CDU, predicted Thursday that the
deficit would fall below 3% next year.
Total debt is projected by the ministry at 75.5% of GDP this year
and 77% next year.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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