• Germany edition
 
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)

Don't miss...X
Left Right

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
Space ship brings special cargo for astronaut
The Ariane 5 rocket lanching in French Guiana. Photo: ESA

Space ship brings special cargo for astronaut

The last European space freighter blasted off to the International Space Station (ISS) on Wednesday, carrying a special treat for the station’s German astronaut. The launch of the German-built supply ship marks the end of an era. READ  

World Cup victory brings relief to German brewers
Beer sales abroad and during the World Cup were behind the rise. Photo: DPA

World Cup victory brings relief to German brewers

Germany’s World Cup victory was also good news for the country’s brewers who saw a welcome reversal in the long-term trend of falling beer sales. READ  

Foreigners less likely to get jobs than Germans
A woman walks past a German job centre in Saxony. Photo: DPA

Foreigners less likely to get jobs than Germans

Foreigners from outside the EU suffer from a much lower employment rate in Germany than native citizens and EU immigrants, a study confirmed on Wednesday. READ  

German squad leaves out one-legged long jumper
Markus Rehm. Photo: DPA

German squad leaves out one-legged long jumper

German athletics officials said on Wednesday they would not nominate the country's long jump champion Markus Rehm for the European championships because of fears his prosthetic leg gives him an unfair advantage. READ  

Second man arrested after synagogue attack
The synagogue on Tuesday after the attack. Photo: DPA

Second man arrested after synagogue attack

Police arrested a second suspect on Wednesday in connection with an attempted arson attack in which Molotov cocktails were thrown at a synagogue in western Germany. Another man who said he was Palestinian has denied involvement. READ  

German women fall short of equality
Still a man's world: women in Germany find it hard to rise as high as Defence Minister Ursula von der Leyen. Photo: DPA

German women fall short of equality

Women in Germany are still underrepresented in leadership jobs and among professors, a new government report said on Wednesday. They are also paid less and remain unlikely to study science, technology, engineering or mathematics. READ  

The Local List
Five reasons to visit (and to avoid) Oktoberfest
Photo: DPA

Five reasons to visit (and to avoid) Oktoberfest

With just over 50 days to go until Munich's Oktoberfest starts, it is time to book your train/plane/horse to the world’s biggest beer festival. Or is it? The Local List looks at five reasons you should be making that trip, and five why you'd better steer clear. READ  

Visa chaos hits Bayern Munich's USA tour
Karl-Heinz Rummenigge. Photo: DPA

Visa chaos hits Bayern Munich's USA tour

Bayern Munich boss Karl-Heinz Rummenigge is among the club's staff and players who could not join a week-long tour to the USA on Wednesday because of visa problems. READ  

Dead TV star replies to SPD party invite
German actress Renater Küster with a statue of her late husband Dieter Hildebrandt. Photo: DPA

Dead TV star replies to SPD party invite

The Social Democrats (SPD) accidentally invited a dead TV star to attend its summer party. It got a shock when the veteran presenter replied saying, "I can't make it". READ  

Father killed in 'Cold Water Challenge'
The digger tipped over. Photo: DPA

Father killed in 'Cold Water Challenge'

A father died and five of his friends were injured on Tuesday night in western Germany when a digger fell on top of them during a so-called Cold Water Challenge. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Analysis & Opinion
Have Your Say: Should Germany legalize cannabis?
Photo: DPA
Education
Germany's students fail to graduate in time
Photo: DPA
Gallery
Hamburg harbour lit up in blue
Business & Money
JobTalk: 'Application process is failing'
Photo: Bundesarchiv/Bild 183-S45825
Culture
Germany puts 700,000 WWI docs online
Photo: DPA
Society
This man wants to give all of us €12,000 a year
Photo: DPA
Education
Top university switches master's courses to English
instagram.com/gotzemario
Gallery
Germany's World Cup stars share their holiday photos
Travel
Plans unveiled for bike trail along former Iron Curtain
Photo: DPA
Gallery
The Local List: 12 best words in German
Photo: DPA
Gallery
German Bucket List: How many of these can you tick off?
Photo: Europeana.de 1914 - 1918
Gallery
A German soldier's life behind WWI lines
Education
Raising the bar for law & business in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
Photo: DPA
Features
The Local List Archive - Your guide to all things German
National
Share news tips with The Local Germany
Sponsored Article
Bilingual school turning education on its head
Sponsored Article
CurrencyFair: Why it pays when making overseas transfers
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

3,241
jobs available
Toytown Germany
Germany's English-speaking crowd