IW Economic Forecast, Spring 2011
Solid Dynamics in a Risky Environment
German Economic Institute (IW)
IW Economic Forecast, Spring 2011
Economic activity in Germany remains buoyant and will reach new record levels. Real GDP is projected to expand by 3 ½ percent in 2011 and by 2 ¼ in 2012. The main growth driver will be private consumption due to the positive development of the labor market. In 2012, unemployment will go down to 2.6 million people on average. In addition investment growth will unfold on a broad platform. Due to these developments the consolidation of public deficit and public debt will progress and reduce the fiscal deficit to ½ percent of GDP next year. Nevertheless, some global downside risks persist. However, they do not seem serious enough to endanger a robust worldwide recovery.
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Solid Dynamics in a Risky Environment
German Economic Institute (IW)
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