Germany's BDI sees 1.5 percent growth

30 May, 2004

Germany's economy will probably expand by 1.5 percent this year but the country's labour market would remain a concern, German BDI industry federation chief Michael Rogowski was quoted as saying on Saturday.
In an interview to be published on Sunday, Germany's Welt am Sonntag newspaper quoted Rogowski as saying a recovery in Europe's largest economy was on its way.
"This year will reach a good 1.5 percent in growth. In 2005 maybe a bit more," he said.
His latest comments were slightly more upbeat than a previous forecast. In April, he said Germany would not get growth "beyond 1.5 percent" this year.
However, Rogwoski warned Germany's stubbornly high unemployment level would not change significantly unless there was a sustained pick-up in economic growth.
"For us to really feel a recovery, for things to pick up on the labour market, we would need growth rates of three percent and more," he said.
More than one in 10 Germans are out of work. In April, the seasonally adjusted jobless total rose by 23,000 from March to 4.367 million. The Federal Labour Office publishes May unemployment numbers on June 8.

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