20.09.201005:12:00UTC+00Germany Expects Growth To Slow Sharply In H2

Germany's finance ministry on Monday said it expects the economic recovery to continue into the second half of the year, albeit at a significantly slower pace.

Consumer spending is likely to pick up and help to further stimulate domestic demand, it said. The ministry also forecast the labor market to improve further as the cyclical upswing continues.

The German economy grew at a record pace of 2.2% between April and June, driven by exports and investment. The economy's strong showing in the second quarter spurred the country's central bank to raise its 2010 growth forecast to 3%.

The ministry said in its monthly report that Germany's total tax revenue for August increased 3.6% from a year ago. The tax revenue of the federal government was up 3.2%.

For the cumulative period of January to August, total tax revenue fell 0.4% over the same period last year. Federal tax revenues dropped 3.5%.

Copyright(c) 2010 News.com, Inc. All Rights Reserved