German Growth Forecast Lower for 2008

The U.S. subprime crisis takes a toll, and a possible minimum wage hike could hurt employment, but Germany is still seen as a good place to do business

Just months ago, the German economy was buoyed by surprising bits of good news -- like strong growth and lower unemployment -- which indicated a minor boom. But 2007 took its toll, and now the German Economics Minister, Michael Glos, agrees with new, more pessimistic growth estimates. "It's too early for an exact prognosis," he told the mass-market Bild newspaper. "But in general I see economic growth in 2008 at just under 2 percent."

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