FRANKFURT (MNI) – The German government will likely cut its 2012
GDP forecast to +0.75% from +1.0%, German daily Handelsblatt reported
Thursday, citing government sources.
However, the newspaper noted, the intended reduction must yet be
agreed with other ministries, in particular Finance, before the Economy
Ministry can determine the precise forecast.
The paper said the lowered expectation reflected the weakness of
growth in 4Q 2011, which the Economy Ministry had hoped would be flat
but now sees as having contracted 0.25%.
–Frankfurt newsroom +49 69 72 01 42; Email: frankfurt@marketnews.com
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