German economy to accelerate despite eurozone weakness – DIW

10 April 2013 16:21  [Source: ICIS news]

LONDON (ICIS)--Germany’s economy is likely to accelerate in coming quarters, despite continued eurozone worries, a research group said in an update on Wednesday.

DIW Berlin said that Germany’s GDP growth would come from the domestic economy and from exports to emerging economies, as the euro area continues to decline in importance for German exporters.

"The German economy is decoupling from the difficult situation in the neighbouring countries and continues to grow strongly, even though because of the weak start to 2013, the growth rate will be quite low,” said DIW economics chief Ferdinand Fichtner.

DIW forecasts Germany’s GDP growth at 0.7% for 2013, higher than the government’s 0.4% projection. For 2014, DIW expects Germany’s GDP to grow by 1.6%.

Nevertheless, Germany’s economy will still not be working at full capacity, with the output gap closing only by 2015, the institute added.

In related news, Peter Loescher, the CEO of Siemens, said that the Germany-based industrial and technology giant has yet to feel the economic upswing many experts predicted.

In an interview with German business daily Handelsblatt, Loescher said that in the current situation the global economy was missing a growth engine such as China which helped during the 2008/2009 crisis.

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

By: Stefan Baumgarten
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