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Germany says economic outlook ’stable’, but sees big risks
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septembrie 12, 2012 |
The outlook for the German economy, Europe’s biggest, is stable for the second half of this year, but substantial downside risks remain, the German Economy Ministry warned on Tuesday.
After Germany notched up growth of 0.5 percent in the first three months and 0.3 percent in the second quarter, „the latest economic indicators point to a fairly stable development for the second half of the year,” the ministry wrote in its regular monthly report.
„But there is no reason to sound the all-clear. The downside risks to the economy predominate and are still substantial,” the ministry said.
Germany has held up better than its eurozone partners in the current crisis, thanks largely to painful and deep structural reforms implemented a number of years ago.
While the single currency area as a whole contracted in the second quarter, Germany continued to grow, albeit at a rather muted pace.
And forward-looking indicators suggest that the German economy is also beginning to lose some of its momentum, as export demand falters. AFP