• Germany's news in English
Hundreds of great job opportunities for foreign professionals at Germany's top employers - in cooperation with Monster, Experteer, Stepstone, and CareerBuilder.
jobs available
Find English-speaking professionals with The Local.
Advertise a vacancy
Germany 'optimistic' on growth despite crisis
Photo: DPA

Germany 'optimistic' on growth despite crisis

Published: 25 Apr 2013 12:46 CET

"2013 will be a good year," Economy Minister Philipp Rösler said, unveiling a slight upgrade in Berlin's growth forecast for the current year to 0.5 percent from a previous prognosis of 0.4 percent.

At the same time, the government is sticking to its forecast that growth will gather pace to 1.6 percent in 2014, the minister said.

"We have every reason to look to the future with optimism. The German economy is picking up. It is leaving the winter behind it. The labour market is keeping up its momentum, with employment set to rise and unemployment expected to fall," Rösler said in a statement.

The government's updated forecast is nevertheless slightly more cautious than others.'

Last week, Germany's leading economic institutes predicted in their annual spring report that gross domestic product (GDP) would expand by 0.8 percent in 2013 and then by 1.9 percent.

The think-tanks - Ifo in Munich, IfW in Kiel, IW in Halle and RWI in Essen - said the economic skies above Germany appear to be clearing and the recovery of Europe's top economy looks set gather momentum during the course of this year.

The International Monetary Fund, too, is slightly more optimistic than Berlin, pencilling in growth of 0.6 percent for this year.

Germany has managed to avoid the recession that the eurozone's long-running sovereign debt crisis has pushed many countries into. But the economy contracted in the final quarter of 2012, bringing overall full-year growth down to just 0.7 percent from 3.0 percent the previous year.

And a raft of recent forward-looking indicators, including the Ifo business climate index, have started to decline, fuelling concerns that the nascent recovery might already be running out of steam.

Rösler insisted that the government had strengthened the conditions for Germany "to be an anchor of stability in Europe again this year." The favourable trend on the labour market would continue, he said.

"The jobless total will this year remain stable at the lowest level in 20 years. And next year, the average annual jobless number will decline by 90,000. That will bring the jobless rate down to 6.6 percent," Rösler said.

In 2012, the German jobless total stood at an annual average 2.897 million and the jobless rate stood at 6.8 percent.

On the inflation front, the government predicted that consumer price index will rise by 1.7 percent in 2013 and by 1.9 percent next year after an increase of 2.0 percent in 2012.

The European Central Bank defines price stability as inflation rates close to but just below 2.0 percent.


The Local (news@thelocal.de)

Your comments about this article:

The comments below have not been moderated in advance and are not produced by The Local unless clearly stated. Readers are responsible for the content of their own comments. Comments that breach our terms and conditions will be removed.

Your German Career
What do German bosses need to do to get more out of their staff? Frankfurt-based business consultant Justin Bariso has this advice.
Germany's Federal Employment Agency has identified the job sectors the country is most short of workers for. JobTalk looks at where the vacancies lie.
Students at German universities have shown themselves to be a risk-free lot in a survey by Ernst & Young. The civil service is their most popular choice of future profession, while job security is valued above all else.
Jenny Core, originally from Bolton, England, shares her tips in this week’s My German Career on being an artist in Berlin. The 27-year-old exhibits her work regularly in the city, including next to a Turner Prize shortlister.
In this week's JobTalk, Tanya Schober, who is originally from India, talks us through her journey to German citizenship.
In this week's My German Career, Anupama Gopalakrishna, who is originally from Bangalore in India, tells The Local about her new life in Frankfurt.
German Employment News
German jobless numbers rose this month, bringing unemployment up to seven percent, the Federal Labour Agency (BA) reported on Thursday.
In our ongoing weekly series, The Local looks into a successful entrepreneur's life - the story behind his successes, major challenges and how being an entrepreneur changed him forever. This week, Sparsh Sharma talks to Malte Zeeck, founder and co-CEO of Munich-based InterNations, a social network for expatriates worldwide.
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 Robin Eric Haak, founder and COO of Berlin-based Jobspotting.
The German labour market continued to shine in December, shrugging off current economic weakness, with unemployment now at its lowest level since unification, official data showed on Wednesday.
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.
In our weekly feature series, The Local chats with a successful entrepreneur. This week, Sparsh Sharma talks to Simon Schneider, CEO and co-founder of networking tool Zyncd.

Account Manager
We offer a unique opportunity to make a real impact on autobutler.co.uk

Added 01/31/15

Added 01/31/15

Added 01/31/15

Added 01/31/15