Germany’s economy is expected to cool because of slower growth and rising food and oil prices, possibly affecting the German-focused exchange traded fund (ETF). The slowing is blamed mostly on rising food and oil prices, in addition to fallout from the U.S. subprime crisis.
The Associated Press reports that Economy Minister Michael Glos was quoted as saying the government was scaling back its 2008 forecast to just below 2%, but he didn’t give a specific figure.
Increased global risk could slow growth and touch down on iShares MSCI Germany Index (EWG). The economy isn’t frozen by any means, said the president of Germany’s economic institute. GDP is expected to expand 2.1%, following the 2007 growth of 2.4%. Also, 300,000 new jobs are expected by 2009 and average salaries are on their way up for the first time in five years.
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