Germany's Growth Lower Than Expected

The Institute for World Economics has released figures showing more bad news for Germany. The Kiel-based organization on Wednesday revised its projection for gross domestic product growth from 1.8 percent to just 1 percent. In a statement, the institute said that factors such as lower tax revenues, stock market losses and the labor market situation would contribute to reduced consumer spending in 2003. Analysts also said that net new borrowing would not fall under the 3 percent mark. Germany's budget deficit for 2003, they estimate, would reach 3 percent.