• Germany's news in English
 

Germany slashes 2013 growth forecast to 0.4 pct

Published: 16 Jan 2013 12:37 GMT+01:00

Europe's powerhouse economy should expand by 0.4 percent in 2013, Economy

Minister Philipp Rösler said, a sharp downwards revision from a previous forecast of 1.0 percent. In 2014, growth should be 1.6 percent, he said.

"There is every reason for confidence," Rösler said in a statement as he presented the government's annual economic report.

"We believe that the weak phase this winter will be overcome in the rest of the year and that our economy will get back into gear," added the minister.

Germany has until recently fared better than most of its debt-stricken eurozone partners in the crisis but the economy began to slow sharply at the end of last year.

Data published on Tuesday showed Germany's powerhouse economy grew by a mere 0.7 percent in 2012 after a stellar 2011 when GDP expanded by 3.0 percent. And the economy seemed to have slammed abruptly into reverse in the fourth quarter of the year, as officials estimate a contraction of 0.5 percent.

Germany has been hit not only by the woes of its eurozone trading partners but also by a slowing global economy that has reduced demand for its all-important exports.

Nevertheless, unemployment remains at low levels for the moment, although analysts have warned that this too cannot last forever.

Rösler himself said there would be around 60,000 more people unemployed in 2013 than in 2012 but said this period of weakness would be "temporary."

"In the course of 2013, growth should noticeably pick up. It will be driven primarily by domestic demand," he added.

Germany would achieve its goal of registering a structurally balanced budget in 2014, Rösler said.

AFP/mry

The Local (news@thelocal.de)

Your comments about this article

15:07 January 16, 2013 by Berlin fuer alles
If the government can't bury this in election year what is the real story? Oh Angie, what have you done? Idiot.
17:31 January 16, 2013 by smart2012
Germany was "booming"n long long time ago. Finally BILD will not be able to hide it. Where did the "stand alone" strategy bring to? Well done Verkel, and Buba, and Bild! this is the pay back
18:42 January 16, 2013 by Tonne
So growth, driven primarily by domestic demand, will pick up in 2013 but unemployment will be higher in 2013.

Does this mean that wages will increase substantially in 2013, in the face of higher unemployment, or does Roesler have a new economic theory to explain his logic?
20:22 January 16, 2013 by Dalmation
@ Tonne

No, Roesler is only trying to persuade us the ship isn't sunk yet and hopes we won't realise we are neck deep in it until after the elections in Q3.
Today's headlines
EU-US trade talks prompt German ire
Photo: DPA

EU-US trade talks prompt German ire

In much of Europe any mention of TTIP might receive a blank stare, in Germany the proposed US-EU free trade pact is likely to prompt a volley of angry words. READ  

Auschwitz expert slams Nazi justice record
Photo: DPA

Auschwitz expert slams Nazi justice record

Oskar Gröning, 93, a former Nazi known as the "bookkeeper of Auschwitz", goes on trial in Germany on Tuesday in what could be the last Nazi war crimes trial while an expert calls the country's judicial record 'miserable'. READ  

Turkish Airlines: married pilots are safer pilots
Photo: DPA

Turkish Airlines: married pilots are safer pilots

The general manager of Turkish Airlines has urged single pilots to marry, after the Germanwings tragedy blamed on a pilot with psychological problems. READ  

Germany and Greece
'It hurts when Germans call Greece a failed state'
Thanasis Glavinas outside one of the German parliament's buildings. Photo: Private

'It hurts when Germans call Greece a failed state'

With the war of words – and cashflows – between Greece and Germany showing no sign of dying down, The Local meets one young Greek who's come to see what the Germans have to teach about running a country successfully. READ  

Interior Minister wants quicker deportations
'Loitz doesn't need any asylum seekers' reads the graffiti. Photo:DPA

Interior Minister wants quicker deportations

Interior Minister Thomas de Maizière called on Friday for state governments to speed up deportations of failed asylum applicants, in the latest round in a war of words between the federal government and the states. READ  

VW CEO survives despite departure rumours
Photo: DPA

VW CEO survives despite departure rumours

Volkswagen CEO Martin Winterkorn has dodged a broadside from company chairman Ferdinand Piech which many thought would unseat him from the troubled car maker. Instead, the steering committee has offered him an extension to his contract. READ  

Bayern doctor quits in spat with Guardiola
Tension on the touchline: Guardiola, Schweinsteiger and Müller-Wohlfahrt Photo: DPA

Bayern doctor quits in spat with Guardiola

The resignation of iconic club doctor Hans-Willhelm Müller-Wohlfahrt on Thursday evening threatens to unleash internal chaos at Bayern Munich after their Champions League humiliation at the hands of FC Porto. READ  

Deutsche Bahn flirts with drivers' strike deadline
An InterCity train in Hannover's main train station. Photo: DPA

Deutsche Bahn flirts with drivers' strike deadline

Rail operator Deutsche Bahn has until 3 pm on Friday to respond to demands from the Train Drivers' Union (GDL) for a "reasonable provisional result" in talks over pay, conditions and union representation. READ  

Liberals: Data retention unconstitutional
Deputy leader of the Free Democratic Party Wolfgang Kubicki. Photo:DPA

Liberals: Data retention unconstitutional

The deputy leader of the Free Democratic Party (FDP), Wolfgang Kubicki, called the government's plans to store communications data 'unconstitutional' and said he will fight the proposals in court. READ  

Germany honours Warsaw Uprising fighters
Leszek Zukowski (c) participated in the Warsaw uprising. Photo:DPA

Germany honours Warsaw Uprising fighters

Germany on Thursday awarded its highest honour for the first time to Poles who fought the occupying Nazis in the ill-fated Warsaw Uprising of 1944, one of World War II's bloodiest episodes. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Politics
A Greek learning politics in Germany
Features
The battle of the "Gates of Berlin"
National
Germany's favourite baby names of 2014
National
Germany's 'very poor' lobbying record
National
VIDEO: Mario Draghi suffers anti-ECB confetti attack
Politics
Merkel's 15 years at the top of German politics
Shutterstock
Sponsored Article
10 things you didn’t know about Zagreb (and why you should go)
Features
Spice up asparagus season with The Local's serving suggestions
Sponsored Article
What expat parents should ask before choosing a school
Travel
Lowest of the low: how woman exploited Germanwings crash
Sport
Football and the €30,000 firework
Technology
Why scientists oppose killer robots
National
Germanwings co-pilot 'searched suicide info'
Technology
Electrifying 'Ostalgia'
National
Which city is Germany's worst for drivers?
National
'Cannibal cop' gets 8 years
Can the 'nightmare' of a pilot downing a plane be prevented?
National
LIVE: Co-pilot suspected of crashing plane
Pupils mourn lost classmates
National
Freed after 25 years on death row
National
Cologne Cathedral returns from space
Features
Paddy's Day, Berlin style
Is your workload 'out of control'? You're not alone...
National
Why east Germans are happy to get it on on camera
National
What would you do with a 250-year-old pretzel?
Features
Just why is the German flag Schwarz, Rot, Gold?
Business & Money
Getting German workers and bosses thinking positive
National
Uplifting thoughts to get you through the last week of winter
National
Who wants the Olympics more - Hamburg or Berlin?
National
Last-minute drama of Germany's Eurovision 2015 entry
National
German photographer takes world's top prize
Features
Meet the woman getting Germans to drink more – and better – beer
Gallery
Get inspired for International Women's Day with German heroes
Green party proposes first-ever cannabis legalization plan
Gallery
In pictures: Germany's seven most livable cities
National
Singapore canes Germans for train graffiti
Politics
Surprise! Germans love feeling like they run the EU
Politics
Anger over plan to show women what men earn
Travel
Munich tram fans bicker over new bell
Features
Kafka: puzzling translators 100 years on
Business & Money
France or Germany: Which country really is the best country to work in?
Photo: Police
Rhineland
Student driver crashes tank into family garden.
Photo: DPA
Politics
There was a notable absence at the Anti-Semitism Commission
National
How Dresden bombing still divides Germany, 70 years on
Photo: DPA
Gallery
Take a cute break with this gallery of baby animals
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

7,264
jobs available
Toytown Germany
Germany's English-speaking crowd