Geman economy may grow by 2% in 2004

The German federation of chambers of commerce, the DIHK, has said it believes the domestic economy could grow by 2% next year but under three conditions, said DIHK head Martin Wansleben at the presentation of the federation's autumn report.

DIHK surveyed more than 25,000 companies in Germany for its report, and says it expects the world's third largest economy to pick up after three years in the doldrums.

The upturn will receive impetus from exports, domestic demand and an extra four working days, he said.

On the downside, companies are reluctant to invest and hire workers, and the DIHK is worried that the number of jobs could even decrease by a further 100,000 next year.