The biggest eurozone economy is going to be slowed down by rising commodity prices, the strength of the euro on world markets and global economic conditions, the German economy ministry said Monday. "The German economy's growth pace should take on a more moderate tone," from October through December, a ministry statement said.
"Global economic growth, robust but a bit less strong, high prices for raw materials and the strong euro should have an effect" on growth estimated to reach 2.4 percent this year, following an expansion of 2.9 percent in 2006.
For next year, the German government still forecasts growth of 2.0 percent, even though many independent bodies have revised their own estimates lower. On Monday the German central bank lowered its forecast for growth in 2008 to 1.6 percent, and the economy ministry has already indicated that it too could trim its estimate early next year.
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