Germany cuts view of growth in 2013
Source: Agencies |
October 18, 2012, Thursday
|
Print Edition
Print Edition
EUROPE'S debt crisis and waning economic growth around the world, particularly in emerging markets, prompted the German government to cut its forecast for expansion next year.
Though the Economy Ministry cut its growth forecast for 2013 to 1 percent from 1.6 percent, it sought to reassure anyone fearing that Europe's largest economy was heading into an economic crisis. Yesterday's revised outlook puts the government in line with other recent forecasts.
Despite downgrading its 2013 forecast, the ministry raised this year's outlook slightly from the 0.7 percent it predicted in April to 0.8 percent.
Germany's economy, which was worth a little under 2.6 trillion euros (US$3.4 trillion) last year, in comparison with the US's 12 trillion euros, has seen two straight years of robust growth. Its economy grew by 4.2 percent in 2010 and 3 percent last year.
However, it has lost momentum as the debt troubles on its doorstep have weighed on economic confidence.
Nonetheless, its continued growth stands in sharp contrast with the recessions hitting many of its euro partners, such as Spain, Greece and Portugal.
Economy Minister Philipp Roesler, who is also the vice chancellor, said indicators point to "further moderate growth" in the third quarter after the year's first half went better than expected. Third-quarter GDP figures are due on November 15.
After a slacker winter, Roesler said there are signs the global economy may pick up speed next year, helping Germany. Exports are a traditional German strength.
Given the less rosy economic outlook, labor union officials are arguing that the government needs to consider some kind of new economic stimulus.
Though the Economy Ministry cut its growth forecast for 2013 to 1 percent from 1.6 percent, it sought to reassure anyone fearing that Europe's largest economy was heading into an economic crisis. Yesterday's revised outlook puts the government in line with other recent forecasts.
Despite downgrading its 2013 forecast, the ministry raised this year's outlook slightly from the 0.7 percent it predicted in April to 0.8 percent.
Germany's economy, which was worth a little under 2.6 trillion euros (US$3.4 trillion) last year, in comparison with the US's 12 trillion euros, has seen two straight years of robust growth. Its economy grew by 4.2 percent in 2010 and 3 percent last year.
However, it has lost momentum as the debt troubles on its doorstep have weighed on economic confidence.
Nonetheless, its continued growth stands in sharp contrast with the recessions hitting many of its euro partners, such as Spain, Greece and Portugal.
Economy Minister Philipp Roesler, who is also the vice chancellor, said indicators point to "further moderate growth" in the third quarter after the year's first half went better than expected. Third-quarter GDP figures are due on November 15.
After a slacker winter, Roesler said there are signs the global economy may pick up speed next year, helping Germany. Exports are a traditional German strength.
Given the less rosy economic outlook, labor union officials are arguing that the government needs to consider some kind of new economic stimulus.
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