• Germany's news in English
 
Germany slashes 2013 growth prognosis
Photo: DPA

Germany slashes 2013 growth prognosis

Published: 17 Oct 2012 12:44 GMT+02:00
Updated: 17 Oct 2012 14:01 GMT+02:00

The government is pencilling in growth of 0.8 percent for 2012, marginally more than an earlier forecast for 0.7 percent.

But Europe's top economy will grow by only 1.0 percent next year, instead of the 1.6 percent Berlin had previously been hoping for, Rösler said.

"The good news is that the German economy is holding up and still on a growth path, despite all the global economic turbulence," Rösler told a news conference.

Germany's economic performance in the first six months of this year had turned out better than thought, the minister said.

"But with the European sovereign debt crisis and the economic weakening in developing countries in Asia and Latin America, Germany is in stormy economic waters," he cautioned.

Companies were holding back on planned investments and the majority of sentiment indicators pointed to a weakening of growth.

"We're therefore expecting a lessening of economic momentum in the winter half-year. But there can be no talk of a collapse in growth," Rösler insisted.

"The German economy remains robust and has stands on a structurally sound basis. There is every indication that the global economy can regain momentum and that means growth will pick up in Germany, too," Rösler said.

Last week, Germany's leading economic think tanks pared back their forecast for this year to 0.8 percent and slashed the prediction for next year in half to 1.0 percent, warning there was a "great danger" that Europe's top economy could fall into recession.

Chancellor Angela Merkel, too, acknowledged that after two "very good" years of growth, this year would be "weaker."

German gross domestic product (GDP) expanded by 4.2 percent in 2010 and by 3.0 percent in 2011.

Rösler said the outlook for the German market remains "very favourable, even if it is losing momentum."

Employment in Germany was already at record levels and was expected to rise further next year when some 41.6 million people were projected to have a job.

At the same time, the annual average jobless total was expected to fall to 2.9 million this year and remain at that level next year, Rösler said.

With purchasing power set to rise as inflation remains at around 2.0 percent this year and 1.9 percent next year, household spending "will remain the main driver of growth," the minister continued.

Export growth, traditionally the motor of the German economy, has slowed sharply since last year owing to the global economic weakening, but remains relatively robust, Rösler said.

AFP/The Local/hc

The Local (news@thelocal.de)

Your comments about this article

15:12 October 17, 2012 by Berlin fuer alles
Trying to figure out what the picture has to do with the story.
19:03 October 17, 2012 by smart2012
And here is the clear sign that Germany needs Euro more than others. And verkel has lost 1.5 years focusing on the wrong agenda, bringing Europe close to a disaster and creating nationalistic thoughts to come in again. If the disaster will not happen we need to thank Hollande, Monti and Draghi...

Go Europe

Chris Rea?
22:21 October 17, 2012 by ChrisRea
I am not sure we have much to comment here, without falling into the trap of groundless speculations. We have no clue what factors were significantly impacting the rate of growth and even less possibility to quantify Ms. Merkel's contribution (both positive and negative). Mr. Rösler presented only the current status and couple of forecasts, without providing data to support an analysis.

But on the very topic of nationalistic thoughts in Europe, I can say that at least this summer Ms. Merkel, together with other European and American officials, had a significant, if not decisive, impact in maintaining the state of law in Romania, even if the nationalist card was played by the ones seeking to monopolise the political power there. And I guess her presence in Bucharest today helps as well.
23:14 October 17, 2012 by smart2012
Thx Chris, I appreciate your low profile answer. But I have to keep criticizing verkel as she was destroying Europe with her buba driven political approach, which was driving populism in Germany, Greece, Spain etc.. We need to say thanks to the French that got rid of sarkozy and italians who got monti, who enabled more reasonable agenda and stopped a one sided (german) view approach.
Today's headlines
'50 Shades of Grey' to premiere in Berlin
The book comes to the screen Photo: DPA

'50 Shades of Grey' to premiere in Berlin

Smut sensation "50 Shades Of Grey" will receive its international premiere at the Berlin Film Festival, it was announced Monday. READ  

Man tries to open plane door over Munich
Photo: DPA

Man tries to open plane door over Munich

A man tried to open the emergency door of a plane as it was approaching Munich airport, police reported on Monday. READ  

Reporter sacked over Pegida 'interview'
Last week's Pegida protest in Dresden, which drew a crowd of 15,000 Photo: DPA

Reporter sacked over Pegida 'interview'

An undercover reporter who allowed himself to be interviewed by a rival TV network whilst taking part in an anti-Islamization demonstration in Dresden has been sacked, Spiegel reported Monday. READ  

'We have to take care of Isis victims': minister
A Yazidi woman at a Hannover demonstration against Isis in August.

'We have to take care of Isis victims': minister

The government plans to set up a trauma centre for victims of a mass rape campaign by the Islamic State (Isis) militant group, Overseas Development minister Gerd Müller said on Monday. READ  

Adidas sells three million World Cup shirts
World Cup-winning manager Joachim Löw accepts the award at a gala in Baden Baden on Sunday Photo. DPA

Adidas sells three million World Cup shirts

Football fans have snapped up a total of more than three million replica kits of their world-cup winning heroes, Adidas announced, with much of that boost coming in the run-up to Christmas. The team were also honoured as Germany's "Sportsmen of the Year" on Sunday. READ  

Good news for your Christmas overdraft
Photo: DPA

Good news for your Christmas overdraft

Shoppers who go into the red on their bank account over the Yuletide period have received some early festive good news, with a plan to clarify Germany's complex rules on overdrafts. READ  

Amazon pledge: Xmas pressies will arrive
Striking Amazon workers outside a distribution centre in Leipzig on December 8th. Photo: DPA

Amazon pledge: Xmas pressies will arrive

Online retailer Amazon said on Monday that walkouts at distribution centres across the country wouldn't affect Christmas orders as the strike spread across Europe. READ  

Armed heist at Berlin's top department store
The aftermath of the raid at Berlin's luxury department store Photo: DPA

Armed heist at Berlin's top department store

Stunned shoppers looked on in horror as masked robbers made a daylight raid at Germany's most exclusive department store on the busiest shopping day before Christmas. READ  

Security tests find holes at Frankfurt airport
Security checks at Frankfurt airport in July 2014. Photo: DPA

Security tests find holes at Frankfurt airport

Weapons and dangerous objects were successfully smuggled through security checks 50 percent of the time at Frankfurt airport, in a probe by European Commission inspectors, it emerged on Sunday. READ  

Breakfast stumble costs Berlin giraffe her life
Kibaya before her fatal fall Photo: DPA

Breakfast stumble costs Berlin giraffe her life

One of Berlin Zoo’s most popular attractions has had to be put down, after tearing a muscle in her leg. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Gallery
Top 12 German idioms
Willy Brandt at his inauguration in 1972. Photo: DPA
National
Willy Brandt: the man, the chancellor... the airport?
Dresden skyline and river by night. Photo: DPA
Politics
What does Dresden have against Muslims?
Sponsored Article
Why are these International Baccalaureate students cheering?
Germany's national football team lifts the World Cup trophy
Gallery
Germany's most-Googled words of 2014
National
Why has The Local got a new logo?
Photo: DPA
National
This German was abducted and tortured by the CIA
Culture
10 top tips for partying in Germany
Sponsored Article
Top ten gifts for an expat Christmas
Photo: DPA
Technology
What does the Chancellor see as the future of the internet?
Photo: DPA
Culture
Stuff your face with these festive German cookies
Photo: DPA
Culture
What do beer, breakfast cereal and dildos have in common?
Culture
The Local's guide to German Christmas markets
Sponsored Article
Top five quirky Christmas jumpers
Photo: DPA
Culture
Get ready for Christmas like a German. We tell you how.
Photo: DPA
Munich
She did what with her dead mother?
Photo: DPA
National
Germany still paying for crisis fall out
Photo: DPA
Culture
Saxon wurst is the worst, Christmas market declares.
Photo: DPA
Politics
Can 'sorry' ever be enough for the Linke?
Photo: DPA
Berlin
The Local's series on 25 years since the fall of the Berlin Wall
Shutterstock
Sponsored Article
Offer: Unlimited airmiles through December 19th
Photo: DPA
Gallery
See how Berlin has changed in 22 photos
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,128
jobs available
The Local Spain is hiring!
The Local is seeking a new editor for our site in Spain to join our growing team of internationally-minded, driven, ambitious and clued-up journalists.
Details and how to apply
Toytown Germany
Germany's English-speaking crowd