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German Growth Not Yet Sustainable, Trade Lobby Head Tells Bild

Germany’s export-driven economic expansion will slow in 2011 as foreign sales cool and government support programs expire, Anton Boerner, head of the BGA wholesale and export federation, told Bild newspaper.

The German economy isn’t yet in a self-sustaining economic upswing, Boerner said. Germany’s “debt crisis” poses a risk to growth and governments merely “bought time” by saving Greece from default, he said.

While a lower euro exchange rate helps exports, it also makes raw materials more expensive that are increasingly harder to come by, Boerner said. The government should use any increase in tax revenue from the current upswing to boost private investment in the economy, such as construction, he said.

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