Germany raises 2011 GDP growth forecast to 2.6%

14 April 2011 14:44  [Source: ICIS news]

TORONTO (ICIS)--Germany is raising its 2011 GDP growth forecast to 2.6% as domestic demand will continue to drive Europe’s largest economy, the country's economics minister said on Thursday.

The forecast compares with Berlin's previous 2.3% growth projection from January, and a 2.8% growth forecast for 2011 by German economics institutes last week.

The increase for 2011 would come after 3.6% growth in 2010 and a 4.7% decline in 2009 from 2008.

Germany’s recovery is on a broad basis as domestic demand continues to strengthen,” economics minister Rainer Bruderle said.

“We have overcome what used to be an almost traditional weakness in German domestic consumption – growth rates in private consumption are significantly higher now than in the last 10 years,” he said.

The strong domestic economy meant Germany would be able to cope with external shocks, such as rising raw material costs, the Japan disaster and the eurozone debt crisis, Bruderle said.

For 2012, the economics minister forecast Germany’s GDP growth at 1.8%.

Germany's exports are expected to increase 7.5% in 2011 and 6.5% in 2012. In 2010, exports rose 14.1% after declining 14.3% in 2009 from 2008 during the economic and financial crisis.

In Germany’s chemical industry, production is expected to grow by 2.5% in 2011. This compares with 11% growth in 2010, and a 10% decline in production in 2009 from 2008.

Read Paul Hodges’ Chemicals and the Economy Blog
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By: Stefan Baumgarten
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