The US home loan crisis could damage German growth by pushing up the euro and crimping exports from the biggest eurozone economy, German Economy Minister Michael Glos warned in an interview yesterday.
"No one knows what the effects of the American financial crisis on Germany will be in the end," Glos told the mass circulation newspaper Bild.
"The dollar's weak level against the euro and high oil price could slow our growth, which has been strong until now," he said.
"If the dollar continues to fall, it will hamper our export perspectives," he said.
Germany's economy relies to a large extent on exports, while consumption represents a much smaller pillar of growth compared with countries like the US.
It was not the first time that Glos voiced concern over the banking system crisis that followed the collapse of the US market for high-risk home loans, known also as the subprime market.
On Friday, he had warned that "complacency was not an option" given the shock that the US crisis dealt to international financial markets.
The government has forecast that the German economy would expand by 2.3 percent this year, while analysts at Commerzbank estimate it could reach 2.5 percent before falling back to 1.8 percent next year.
In the UK, Northern Rock customers finally appeared confident that they could leave their savings with the crisis-hit lender, with few, if any, expected to queue outside branches yesterday.
Government pledges to protect the savings of the bank's account-holders quelled the panic triggered by news that Northern Rock asked the Bank of England, Britain's central bank, for an emergency loan on Friday.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old