• Germany's news in English
 
app_header_v3

Germany slashes 2013 growth forecast to 0.4 pct

The Local · 16 Jan 2013, 12:37

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."

Story continues below…

"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
Munich pulls together after shopping mall shooting
Photo: DPA

In the chaos after the Munich mall shooting, city residents spontaneously offered shelter to strangers - a move that Chancellor Angela Merkel said showed that Germany's strength lies in its values.

Merkel deplores 'night of horror' in Munich
Photo: DPA

Chancellor Angela Merkel on Saturday said Munich had suffered a "night of horror" after a shooting spree in the southern German city left nine people dead.

Munich shooting
Munich attacker was shy video game fan
People laying flowers at the site of the shootings. Photo: DPA.

David Ali Sonboly was a quiet, helpful teenager who loved playing video games. His neighbours say there were no warning signs before his deadly rampage at a Munich shopping mall.

Munich shooting
Munich gunman inspired by rightwing Breivik: police
Photo: DPA

The lone teenager who shot dead nine people in a gun rampage in Munich was "obsessed" with mass killers such as Norwegian rightwing fanatic Anders Behring Breivik and had no links to the Islamic State group, police said Saturday.

Munich shooting
Turks, Kosovans and a Greek among shooting victims
Photo: DPA

Three Turkish citizens were among the nine people killed in Germany's Munich mall shooting. Three Kosovans were also among the nine victims.

Munich shooting
Munich gunman was likely not Isis terrorist: police
Flowers laid at the Olympia Shopping Centre underground station. Photo: DPA

According to initial investigations by Munich police, the young man who went on a shooting rampage in Munich on Friday evening was a lone gunman without motive, not a terrorist.

Munich shooting
'Lone' Munich shooter kills nine, commits suicide
Photo: DPA

A teenage German-Iranian gunman who killed nine people in a shooting spree at a busy Munich shopping centre and then committed suicide had likely acted alone, German police said Saturday.

As it happened
Nine dead in shooting rampage in Munich
File photo: DPA

Nine people are dead after "at least one person" went on a shooting spree in a Munich shopping centre on Friday evening. An attacker is believed to be among the dead.

German Turkish community split by unrest after coup plot
Pro-Erdogan protesters in Berlin. Photo: DPA

Hatred between supporters of President Recep Tayyip Erdogan and those opposed to him has exploded on social media in Germany in the wake of a failed coup attempt last Friday.

Germany stresses defence of Baltics after Trump comments
Photo: DPA

Germany on Friday stressed its promise to protect its NATO allies after White House hopeful Donald Trump called the commitment into question.

Sponsored Article
Why you should attend an international job fair
Analysis & Opinion
Nice was an attack on France, not on Germany
Sponsored Article
Avoid hidden fees when sending money overseas
National
Bavaria train attack: Were police right to shoot to kill?
National
How to get German citizenship (or just stay forever)
Sponsored Article
Why Swiss hospitality graduates are in demand
Technology
Brexit will turn Berlin into 'Europe’s startup capital'
Sponsored Article
Five things Americans should know about voting abroad
Travel
Six soothing day trips to escape the bustle of Berlin
International
'Germany needs to make UK come to its senses'
Features
Six odd things Germans do in the summer
Travel
These 10 little-known German towns are a must see
Sponsored Article
Why expats choose international health insurance
Features
How two gay dads cut through German red tape to start a family
National
Five things to know about guns in Germany
Sponsored Article
Health insurance for expats in Germany: a quick guide
Culture
10 things you need to know before attending a German wedding
Sponsored Article
Avoid hidden fees when sending money overseas
National
Eight weird habits you'll pick up living in Germany
Lifestyle
Six reasons 'super-cool' Berlin isn't all it's cracked up to be
Society
Only one country likes getting naked on the beach more than Germany
Sponsored Article
Why Swiss hospitality graduates are in demand
Lifestyle
23 ridiculously fascinating things you never knew about Berlin
Culture
8 German words that perfectly sum up your 20s
Sponsored Article
Why you should attend an international job fair
Lifestyle
Can't make it past the door at Berlin's most famous club? Help is at hand
Business & Money
Why Frankfurt could steal London's crown as Europe's finance capital
Features
6 surprising things I learned about Germany while editing The Local
Culture
Five sure-fire ways to impress Germans with your manners
10,799
jobs available
Toytown Germany
Germany's English-speaking crowd