Germany lowers 2013 economic forecastSouce:Xinhua Publish By Jane B. Hatcher Updated 17/10/2012 11:24 pm in Business / no comments
BERLIN, Oct. 17 — The German government on Wednesday lowered its growth forecast for 2013 but lifted its outlook this year, Economic Minister Philipp Roesler said here in Berlin.
Economic growth for the year of 2012 was revised by 0.7 percent to 0.8 percent, while the German economy, the largest in Europe, will grow by only 1 percent next year instead of the 1.6 percent Berlin had previously expected, Roesler said.
“Germany is traversing stormy waters of the European sovereign debt crisis and economic weakening in emerging nations in Asia and Latin America,” he said.
“The good news is that the German economy … continues to grow,” said Roesler, “the German economy is in good shape and is still structurally on a solid foundation”.
The minister expected world economy to regain its momentum in 2013, and that German economy “is likely to pick up again.”
Germany has already seen a reduced growth in the second quarter this year, with a growth rate of just 0.3 percent, down from the previous three months when the economy grew by 0.5 percent.
“Overall, there are substantial downside risks to the economy,” said German Economic Ministry in a report last Wednesday.
Last Tuesday, Germany’s leading think-tanks halved their forecast for the country’s growth next year, from 2.0 percent to 1.0 percent. Forecast for economic growth in 2012 was also lowered from 0.9 percent to 0.8 percent.
The institutes said in a joint report that the global economy was losing its momentum, and “the mood among companies and households has deteriorated further.”
One of the key stress factors was the debt and confidence crisis in the eurozone, the report read.
“The euro crisis is also negatively impacting economic activity in Germany,” it said, “Over the forecasting period as a whole the downside risks prevail and there is a great danger that Germany will fall into a recession.”