Can the German economy grow twice as much as previously assumed?
Most newspapers yesterday carried the upward revision of Germany’s GDP growth this year, by the Kiel Institute of World Economics, IfW, which is now forecasting a growth rate of 2.8% this year, up from earlier estimates of 1%, and then 2%. The upward revision had an impact on the foreign exchange markets, where the euro strengthened against other currencies, according to the Financial Times. The FT Deutschland (print edition) reports that the most remarkable part of the IfW’s latest economic analysis was the upward revision of Germany’s potential growth, from 1% to about 2%. IfW argues that this is related to the now permanent wage moderation by German trade unions, which allows the country to expand faster without incurring inflationary pressures through the labour market. New Century spells trouble for US subprime mortgage market Share trading in the US subprime mortgage lender New Century Financial has been halted by the New York Stock Exchange, amid evidence that the troubles in th
