BANKS SEE GERMAN GROWTH OF AT LEAST TWO PCT

  External risks for the economy have
  increased, but growth of two to 2.5 pct this year is still
  possible, according to President of the West German Federation
  of Banks, Hanns Christian Schroeder-Hohenwarth.
      Schroeder-Hohenwarth told a news conference the further
  fall of the dollar since the start of this year and the
  revaluation of the mark against European currencies meant West
  German exporters were facing a "rough wind."
      However, domestic demand was continuing to rise and private
  consumption in particular would support the economy, he said.
  He saw good prospects for consumer industries.
      Schroeder-Hohenwarth said economic policy now had to
  concentrate on strengthening this domestic growth. In this
  context, he welcomed a decision by the government to increase
  the scope of tax cuts due in 1988.
      He added, a planned reform of the fiscal system scheduled
  for 1990, which was worked out by coalition partners this
  month, was an "important step in the right direction."
      The government plans to cut corporation tax to 50 pct from
  56 pct. However, Schroeder-Hohenwarth said the decision to cut
  the maximum rate of income tax to only 53 pct from 56 pct was
  "rather half-hearted."
  

