WIESBADEN, Germany: The German economy, the biggest in the 12- country euro zone, grew by 0.2 percent in the first three months of the current from the figure for the preceding three months, data published by the Federal Statistics Office on Thursday showed.

Nevertheless, on a 12-month basis, gross domestic product (GDP) in Germany contracted by 1.2 percent in the first quarter from the same period a year earlier, the office said in a statement.--AFP

Hong Kong consumer prices fall 3.1%

HONG KONG: Hong Kong consumer prices fell 3.1 percent in April from a year earlier, a larger decline than in the previous month, government figures showed Thursday.

The Census and Statistics Department said the April composite consumer price index fall compared with a 2.2 percent decline in March.

The government said the larger April fall reflected in part the effect of the water charges and property rates concessions announced in the budget.

These measures accounted for 0.5 of a percentage point in the April fall while a lower base comparison in March also increased the rate of change, it said.

The government said with the removal of these factors, the decline in overall consumer prices in April would have been broadly similar to that in March. --AFP

Taiwan eyes transport links with China before 2004

TAIPEI:- Taiwan is counting on China's cooperation to end a decades-long ban on direct transport links before the island's next presidential elections in 2004, a government spokeswoman said on Thursday.

Taiwan's top China policymaker, Tsai Ing-wen, was quoted by her spokeswoman as saying direct shipping links were likely to be allowed before air links.

"The commercial impact of direct shipping links is smaller," Tsai told parliament late on Wednesday, adding that shipping links involve fewer contentious issues.

"If the mainland cooperates, three links are a possibility before the 2004 presidential elections," she was quoted as saying, referring to trade, transport and postal links.--Reuters

S.Korea takes steps to slow credit card explosion

South Korea said on Thursday it would strengthen rules on issuing credit cards and press for more restraint in giving cash advances, steps aimed at helping deflate a credit bubble in one of Asia's hottest card markets.

The central Bank of Korea announced on Wednesday surprisingly strong 5.7 percent growth in the first quarter after 3.7 percent growth in the final quarter, powered by soaring consumer demand.

The Financial Supervisory Commission said in a statement that it would ban card-issuing campaigns on the streets and credit card firms would be barred from giving away free gifts.

The booming plastic business was ironically fanned by the government after it tried to curb tax evasions by restaurants and mom-and-pop stores by encouraging credit card payments through tax rebates to people who spend more than 10 percent of their income using credit cards.--Reuters