German export growth seen slowing in 2005

Growth of German exports, which have driven the country's recovery this year, are expected to slow in 2005 amid an expected cooling in world economic growth.

The growth of German exports, which have driven the country's recovery this year, will slow in 2005 amid an expected cooling in world economic growth, a leading industry group forecast Friday.

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The German Chamber of Industry and Commerce predicted that exports would expand by nine per cent this year and by six per cent next year -- a projection based on a survey of its 117 overseas chambers of commerce.

"The German export dynamic will ease in the year 2005," the group said in a statement. "The reason for this is the slowdown of the global economic upswing."

The survey cited high oil prices and expected rises in interest rates among reasons why global growth likely will slow to three per cent in 2005 from 3.5 per cent this year.

Germany's economy is growing again after shrinking by 0.1 per cent last year. Growth has picked up in recent months, driven largely by exports into a stronger world economy, and the government expects an increase in gross domestic product of between 1.5 and two per cent for this year.

But domestic consumer demand has remained weak. Friday's survey forecast a six per cent rise in imports both this year and next.