Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: dougjn who wrote (8039)	9/20/1998 12:27:00 PM
From: Sonki	Respond to of 42834

U.S., Europe GDP to grow despite Asia, Japan-IfW KIEL, Germany, Sept 19 (Reuters) - A leading German economic institute said on Saturday that it expected solid growth to continue in western Europe and in the United States, despite world economic turnmoil and recession in Japan. Economic output in the world's major industrial nations should grow two percent this year even as Asia and Russia struggle with their financial crises and Japan's gross domestic product declines, the Institut fuer Weltwirtschaft forecast said in a report. Forecasting U.S. GDP growth of possibly 3.2 percent this year, the IfW said economic expansion in the United States would only be slowed for a short time by the crises and Japan. It also forecast strong U.S. growth in 1999, although the rate would slip to two percent as a result of the high basis of comparison for 1998. In 1997, U.S. GDP grew 2.7 percent. Western Europe should also continue to advance. ''In contrast to in the past year, the expansion has been carried by domestic demand,'' IfW said. The institute forecast western European economic growth of 2.8 percent in 1998 and 2.5 percent in 1999, with Germany, the world's third largest economy, providing much of the impetus. IfW said German GDP would rise 2.7 percent this year on 2.4 percent next year despite concerns from other regions. ''The current economic signs are more important than the impact of the Asian and Russian crises as well as the turbulence in the stock markets,'' IfW said. The group forecast west German growth of 2.9 percent this year and 2.3 percent in 1999. In the formerly Communist east Germany, the economy should expand 1.5 percent this year and 2.5 percent in 1999, the group predicted. The expansion would be supported by a decline in German unemployment. IfW forecast the average number of Germans out of work would fall slightly to 4.3 million this year, and then decline to 3.99 million in 1999. Regarding Japan, the world's second largest economy, IfW forecast GDP would decline 2.1 percent this year, but would recover in 1999, saying growth of 1.2 percent was possible.