The German Chancellor, Dr Helmut Kohl, yesterday repeated his forecast that the German economy would grow by 2.5 per cent this year and up to 3 per cent in 1998.

Dr Kohl told a trade union congress that growth had to be converted into new jobs to cut Germany's unemployment total of more than four million.

"The economic situation is on course for growth again; the latest figures speak of 2.5 per cent for 1997, of up to 3 per cent for 1998," the Chancellor said. "This must be converted into new jobs."