Germany to cut growth forecast for 2003

The German government is to cut its growth forecast for 2003 to 0.75 per cent from 1 per cent, German Economy Minister Wolfgang Clement said.

The new growth forecast, due to be announced officially later today, will form the basis for preparation of revised tax revenue estimates next month and the government's budgetary planning for the rest of the year.

It will be the third time the government has cut its 2003 growth forecast.

But many economists say even the new forecast is highly optimistic. Germany's six leading institutes this month lowered their 2003 growth forecast to 0.5 per cent.

The OECD forecast on Thursday that German growth would only be 0.3 per cent this year.