The government of Germany said high world oil prices may cut economic growth by about 0.25% this year. It was reported by Economy Minister of Germany Wolfgang Clement.
He said yesterday that the government expected 1.8% of growth this year, falling to 1.7% in 2005.
He added they expected that high crude prices had already weakened real growth of the year by almost a quarter of a percentage point.
Yesterday?s trading closed with Light sweet crude of $55.53 a barrel at NYMEX, due to concerns about a threaten to another strike in Norway, which would halt oil producing.
Herr Clement added that if prices were to remain above $50 a barrel for a sustained period, growth in Germany and around the world would suffer.
