The European Commission will next week cut its 2001 growth forecast for Germany, Europe's largest economy, to some 2.25 per cent from 2.8 per cent, according to a draft EU report.
Following an extraordinary export boom in 2000, economic growth in Germany looks set to decelerate somewhat in the near term, mainly because slow growth in the world economy will reduce export expansion, the Commission report said.
According to the projection of the Commission services, GDP growth is therefore likely to decelerate to some 2.25 per cent in 2001, while 2002 should see a slight pick up to just over 2.5 per cent, the Commission said.
The forecast was contained in draft broad economic policy guidelines that the European Union executive is due to publish for all EU countries next Wednesday alongside its spring economic forecasts.
In its forecasts last autumn, the Commission had predicted Germany's economy would expand by 2.8 per cent in 2001 and 2002.
If confirmed, the Commission forecast would be more optimistic than a 2.1 per cent 2001 growth prediction made recently by Germany's six leading economic institutes.
German newspapers have reported that the International Monetary Fund has cut its estimate for German growth this year to 1.9 per cent. New IMF forecasts are due next Thursday.
Germany's government has acknowledged that its earlier target of growth this year of around 2.75 per cent is unlikely to be met and has said it will publish a new forecast in early May.