• Germany's news in English
 
Germany slashes 2013 growth forecast to 0.4 pct
Photo: DPA

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
Germans hit back at anti-immigrant movement
Demonstrators protest against PEGIDA. Photo: DPA

Germans hit back at anti-immigrant movement

Business leaders, the political class and average Germans are pushing back against a growing anti-immigrant movement, saying it threatens the values and image the country fought hard to establish since the war. READ  

German president urges refugee compassion
Photo: DPA

German president urges refugee compassion

Germany's president appealed in a Christmas message for compassion and openness towards refugees coming to the country, which is grappling with a growing anti-Islam movement. READ  

Reward offered for €150k homing pigeon
A female homing pigeon. Photo: DPA

Reward offered for €150k homing pigeon

A breeder in Düsseldorf has offered a €10,000 reward after thieves stole a homing pigeon worth €150,000 from his aviary. READ  

Royal palace restored to glory after €4.5m refit
The vestibule of the Schloss Charlottenburg, which reopens on Boxing Day Photo: DPA

Royal palace restored to glory after €4.5m refit

The royal palace of Fredrick the Great in Berlin is to fully reopen to visitors on Boxing Day after a 4.5 million euro refit. READ  

Bertolt Brecht statue hit with potato salad
Bertolt Brecht and his salad. Photo: DPA

Bertolt Brecht statue hit with potato salad

Bertolt Brecht's statue in front of the Berliner Ensemble theatre was splattered with potato salad by pranksters early on Tuesday morning, in a protest against supposed gentrification of the capital by wealthy southerners. READ  

'Cursed' Christmas Market catches fire
The ferris wheel at Alexa Christmas Market where a man fell to his death last week Photo: DPA

'Cursed' Christmas Market catches fire

A blaze at one of Berlin's biggest Christmas markets has caused locals to wonder if the place is cursed. READ  

JobTalk Germany: Entrepreneur series
'Don’t be skimpy in rewarding top talent'
Taulia co-founder Bertram Meyer. Photo: DPA

'Don’t be skimpy in rewarding top talent'

In our weekly feature series, The Local looks into a successful entrepreneur's life - the story behind their successes, major challenges and how being an entrepreneur changed them forever. This week, Sparsh Sharma talks to Bertram Meyer, one of the four German co-founders of Taulia. READ  

Terror alert 'higher than in decades'
A police armed response unit (SEK) training in North Rhine-Westphalia in August. Photo: DPA

Terror alert 'higher than in decades'

A leaked government report shows that security authorities believe the threat of a terrorist attack in Germany is higher than at any time since the late 1970s. READ  

Wet, windy, stormy Christmas in store
Nobody's dreaming of a wet Christmas Photo: DPA

Wet, windy, stormy Christmas in store

Those hoping for a traditional white Christmas in Germany are going to be disappointed, with weathermen saying Tuesday the current wet, windy and stormy weather is set to stay. READ  

Merkel to have a chilly Ukraine Christmas
President Poroschenko of Ukraine greeting soldiers in a tank on December 6th. Photo: DPA

Merkel to have a chilly Ukraine Christmas

Russia, Ukraine, France and Germany agreed on new peace talks this week on Christmas Eve and Boxing Day, Ukrainian President Petro Poroschenko announced on Monday evening. 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
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

3,225
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