Germany slashes 2013 GDP forecast to 0.4%

16 January 2013 14:44  [Source: ICIS news]

LONDON (ICIS)--Germany’s government has reduced its official 2013 GDP forecast for the country to 0.4% from previously 1.0%, it said on Wednesday.

In its official economic outlook report for 2013 – Jahreswirtschaftsbericht 2013 – the government said that growth slowed in 2012 and the economy was in a weak phase over the winter months, mainly because of the eurozone sovereign debt and confidence crisis, as well as slow global economic growth.

However, the weakness would only be temporary and over the course of 2013 growth should accelerate again, mainly supported by German domestic demand, the government said.

Export growth is expected to slow to 2.8% in 2013, from 4.1% in 2012 and 7.8% in 2011. Gross wages are expected to increase by 2.6% in 2013, the same rate as in 2012, but down from 3.4% in 2011.

Germany will retain its leading role in Europe as regards economic growth and employment markets in 2013 as well,” said economics minister Philipp Rosler.

The government’s reduced GDP forecast for 2013 compares with 0.7% GDP growth in 2012, 3.0% in 2011 and 4.2% in 2010. For 2014, the government forecasts 1.6% GDP growth.

In related news, the country’ federal statistics office indicated earlier this week that Germany’s GDP may have shrunk 0.5% in the 2012 fourth quarter from the third quarter.

The full government report is available, in German, on the economics ministry’s website.

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

By: Stefan Baumgarten
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