German GDP predicted to grow by 1.8%

German economic think-tank the Ifo Institute said it expects German GDP growth of 1.8% next year.

The president of the research institute, Hans-Werner Sinn, said that next year's tax cuts should account for 0.2% points of the expected growth with the higher number of working days in 2004 compared to 2003, giving rise to an additional 0.5% points.