Institutes cut Germany GDP forecasts for 2012, 2013

11 October 2012 14:28  [Source: ICIS news]

LONDON (ICIS)--Germany’s leading economics institutes have cut their 2012 and 2013 forecasts for the country's GDP growth because of the ongoing eurozone crisis and a slower global economy, they said on Thursday.

In a joint assessment, the institutes cut the forecast for 2012 to 0.8% from previously 0.9%, and for 2013 to 1.0%, from 2.0%.

“The euro crisis is putting a strain on the German economy,” they said.

“Economic growth will therefore remain weak for the moment and only looks set to recover again slightly over the course of next year,” they said.

Roland Dohrn, economist at RWI Essen, one of the participating institutes, said: “We have seen a renewed overall  worsening of economic conditions in Europe.

“There are fewer positive impulses from the global economy, with Asia becoming weaker and the US not really getting out of recession,” he added.

The institutes also criticised the European Central Bank’s (ECB) programme to purchase government bonds of eurozone crisis countries, saying that this would increase the danger of inflation in the common currency area.

In Germany’s chemical industry, producers group VCI has forecast a 3% year-on-year decline in production for 2012.

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog

By: Stefan Baumgarten
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