German Growth To Fall To 0.6% In 2012
2011-12-20 11:52:33
Germany's economic growth will slow notably next year amid deteriorating global outlook, before recovering in 2013, the Bundesbank said in its monthly report on Monday.
The central bank confirmed that the economy will grow only 0.6 percent in 2012, down from 3 percent this year. In 2013, the economy will log a 1.8 percent expansion, the central bank projected.
German exporters are likely to see a significant impact from slowing demand in Europe. On the other hand, domestic demand would support the recovery, it said.
According to Bundesbank, the budget deficit will drop to 1 percent of gross domestic product in 2011 from 4.3 percent last year. The deficit ratios will remain almost unchanged in 2012 and 2013, it assessed. At the same time, public debt will ease to 81 percent of GDP this year from 83.2 percent in 2010.
Further, the central bank projects inflation to fall to 1.8 percent next year and 1.5 percent in 2013.