GERMAN EXPERTS SAY NO FURTHER ECONOMIC STIMULUS
The West German government's independent
council of economic experts believes a further stimulation of
the economy is inappropriate, government spokesman Friedhelm
Ost said.
    A statement released by Ost after a meeting of Chancellor
Helmut Kohl and senior government officials with the council
said the experts believed 1987 ecomomic growth of 1-1/2 to two
pct was achievable.
    It added the council believed "an intensification of the
already expansionary stimulation of monetary and financial
policy is not called for."
    Ost's statement said experts believed further pressure on
West Germany to adapt to external economic factors would not
increase.
    The government regularly uses the term "changed external
economic factors" when referring to the fall of the dollar,
which has severely damaged West German exports. Bonn officials
have said they expect exports to pick up during the year, but
could still fall below the 1986 level.
    Along with other leading industrial countries, West Germany
agreed to a package of measures at a meeting in Paris in
February aimed at stemming the fall of the dollar.
    The stance taken by the experts backs up the official
position of the West German government ahead of next week's
seven nation summit in Venice, where Bonn is expected to be
pressed by the U.S. And other partners to boost its economy.
    West German government officials have stressed Bonn is not
in a position to stimulate growth further since tax cuts due
next year and 1990 are already stretching the budget.
    The Bundesbank has also ruled out a quick cut in official
interest rates although it sees market rates continuing low.
    The experts' prediction for economic growth this year of
between 1-1/2 and two pct is a slight downward revision from a
forecast made last November when two pct growth was forecast.
    Many independent forecasters have revised down 1987
predictions in light of the downturn in exports. The government
itself has said it expects growth of just under two pct,
compared with a 2.4 pct expansion in 1986.
 REUTER
