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IW-Forschungsgruppe Konjunktur IW-Trends No. 3 25. September 2011 No Recession Despite Imponderabilities

IW Forecast for Germany Autumn 2011

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No Recession Despite Imponderabilities
IW-Forschungsgruppe Konjunktur IW-Trends No. 3 25. September 2011

No Recession Despite Imponderabilities

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IW Forecast for Germany Autumn 2011

Germany’s growth will slow markedly. In spite of the resurgence of financial market problems, a recession seems, nevertheless, improbable. Real GDP will increase by 3 percent in 2011. In 2012, German exports will increase only moderately and dampen corporate investment. Because of the ongoing positive labor market private consumption will continue to buttress the business cycle. In 2012, the German economy will merely grow by 1 ¼ percent. Despite the weakening of the economy there will be more than 41 million employees. The number of registered unemployed will sink to 2.8 million on average. With a deficit of 7 billion euro and a deficit ratio of ½ percent of the GDP the national budget will almost be balanced.

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No Recession Despite Imponderabilities
IW-Forschungsgruppe Konjunktur IW-Trends No. 3 25. September 2011

No Recession Despite Imponderabilities

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