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Chancellor Angela Merkel

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Get updates on Chancellor Angela Merkel
Analysis: German economy to pick up but fall short of traditional pace

Germany's economy will recover from a bout of winter weakness but fall well short of the dynamic growth rates of previous years as euro zone recession and global slowdown stunt exports and investment.There are homegrown problems too. What hue of government will result from September elections is injecting uncertainty and foreign investors cite worries about over-regulation and Germany's future energy mix after Chancellor Angela Merkel turned her back on nuclear power.Europe's paymaster was long resilient to the euro debt crisis but contracted at the end of last year and only eked out meager growth in the first quarter.The Bundesbank said this week a solid second quarter recovery was in prospect. Construction is expected to bounce back after a harsh winter and private consumption will grow thanks to low unemployment, inflation-busting wage increases and low interest rates.But even the government forecasts just 0.5 percent growth in 2013 and economists doubt German companies will start i...

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