BERLIN, Sept 20 (Reuters) - Germany's recovery is set to slow significantly for the rest of the year, weighed down in part by gloom in some of its trade partners, the German Finance Ministry said in its monthly report on Monday.
'The upswing should likely continue in the rest of the year, albeit at a significantly lower speed,' the ministry said. 'The German economy has started the third quarter cautiously.'
Europe's largest economy has emerged quickly from its deepest post-war recession last year and grew by a quarterly 2.2 percent in the April to June period, its fastest rate since reunification.
This has led economists to boost their growth expectations for the year as a whole to at least 3 percent even though evidence is beginning to harden that the Germany's growth may have peaked.
Manufacturing orders unexpectedly fell in July at their steepest rate in more than a year and German analyst and investor sentiment fell to its lowest level since February 2009 in September.
'The weakening of the industrial dynamics partly mirrors a decline in the speed of expansion of foreign trade,' the ministry said.
However, falling unemployment would likely further boost private consumption, it added. German consumers, traditionally more inclined to save than to spend, contributed to the strong gain in second-quarter output, helping to broaden the rebound.
Tax take rose 3.6 percent in August compared to the previous year to around 35.1 billion euros.
(Reporting by Annika Breidthardt) Keywords: GERMANY ECONOMY/FINANCE (Berlin Newsroom; Tel: +49 30 2888 5142; Email: berlin.econ@news.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'The upswing should likely continue in the rest of the year, albeit at a significantly lower speed,' the ministry said. 'The German economy has started the third quarter cautiously.'
Europe's largest economy has emerged quickly from its deepest post-war recession last year and grew by a quarterly 2.2 percent in the April to June period, its fastest rate since reunification.
This has led economists to boost their growth expectations for the year as a whole to at least 3 percent even though evidence is beginning to harden that the Germany's growth may have peaked.
Manufacturing orders unexpectedly fell in July at their steepest rate in more than a year and German analyst and investor sentiment fell to its lowest level since February 2009 in September.
'The weakening of the industrial dynamics partly mirrors a decline in the speed of expansion of foreign trade,' the ministry said.
However, falling unemployment would likely further boost private consumption, it added. German consumers, traditionally more inclined to save than to spend, contributed to the strong gain in second-quarter output, helping to broaden the rebound.
Tax take rose 3.6 percent in August compared to the previous year to around 35.1 billion euros.
(Reporting by Annika Breidthardt) Keywords: GERMANY ECONOMY/FINANCE (Berlin Newsroom; Tel: +49 30 2888 5142; Email: berlin.econ@news.reuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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