The government’s economy minister said:
We assume that the phase of weakness this winter will be overcome in the course of the year and that our economy gains traction again.
Germany expects domestic demand to drive growth in 2013, at the same time that unemployment is expected to rise from 6.8% to 7%. Exports fell 3.4% in November and export growth for 2013 is forecast to fall from 4.1% in 2012 to 2.8%. Growth in imports will rise from 2.3% last year to 3.5% in 2013.
Contributing to Germany’s economic weakness is the stronger euro, which is trading slightly below $1.33 this morning after touching $1.34 on Tuesday. The relative strength of the currency makes eurozone exports more expensive to foreign buyers.
Germany’s borrowing totaled just 0.32% of GDP in 2012 after adjustments. So while the government could have borrowed at very low interest rates, it chose instead to bite the bullet. Now all it has to show for that bite of austerity is a lagging economy.
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.