German recovery accelerates.

Position:Economic conditions
 
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What a difference six months makes. Twice a year, Germany's six economic institutes take a look at how the economy is doing and issue forecasts of what GDP will be for the year. Then they issue those predictions on the same day. That day was Thursday, April 27, 2006, and the six think tanks-who for their previous release said GDP would grow 1.2 percent in 2006-were now convinced it would be 1.8 percent in 2006. The International Monetary Fund (IMF) also reviews its own economic thinking twice a year. On April 19, 2006, the IMF said that 2006 German GDP would be 1.3 percent. For 2007, the IMF said GDP would grow 1.0 percent.

The German think tank news was widely reported in the international financial press. The specific story used for this piece came from ANTARA News (Jakarta), the Indonesian news agency (April 27, 2006), which appears to be ANTARA's rewrite, with detail added, of an original Agence France-Presse wire story.

The IMF is considerably more pessimistic than either the six German think tanks, or the German government itself (forecasting 1.6 percent GDP in 2006). But no matter what the interpretation, it is clear that most observers are looking for substantial economic growth. The major...

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