Donnerstag, 27. Januar 2011

German Missions in the United States - 2011 Outlook German Economy Expected to Continue Surge into 2011

2011 Economic Outlook Enlarge image Federal Minister of Economics and Technology Rainer Brüderle, report in hand. (© picture alliance / dpa)

Berlin / Washington, Jan 20, 2011
 The Federal Ministry of Economics and Technology yesterday announced that German GDP, fresh from a record rise of 3.6 percent in 2010, would continue its climb, adding an average 2.3 percent growth by year's end. The report, called “Germany in Recovery – Securing Prosperity for Tomorrow,” also anticipates an expanded workforce and lower unemployment.

Federal Minister of Economics and Technology Rainer Brüderle commented on the 2011 outlook with a retrospective look at the roar back from crisis of 2010. “Germany's economy recorded the comeback of the year in 2010,” he said. “With record growth of 3.6 percent, the economy catapulted us out of the business basement. Twenty-eleven, as well, will be a good year.”

Indeed, beyond the 2.3 percent expected growth in GDP, the report looks forward to an ever-expanding workforce. After 2010's average of 40.5 million people employed within Germany set the high-water mark for German employment, 320,000 newly-employed additions are expected in 2011, pushing the anticipated average to 40.8 million people employed.

“For the recovery we have the many hard-working people in the country to thank, who every day rolled up their sleeves anew,” said Minister Brüderle. And with hard work comes the ability to spend: Private consumption, the locomotive of growth, is expected to increase 1.6 percent in the yet new year. Domestic demand, as well, should rise by 2 percent.

 2011 Economic Outlook  

Enlarge image After a 3.6 percent rise in 2010, German GDP is expected to jump another 2.3 percent in 2011. (© picture alliance / dpa)
“But the federal government also had a part in it,” continued Minister Brüderle. “The growth-acceleration bill of 2010 earned its name. That relief of over 24 billion euros was indeed effective.”

Domestically, the growing economy will create wiggle-room for tax relief "as soon as possible," according to Minister Brüderle. He went on, saying that especially for those “with small and middle income levels," tax breaks would be a priority in this legislative cycle.

From an international perspective, the report sees three ways that the European Monetary Union can be strengthened: improving regulation, beefing up the Stability and Growth Pact and arming the euro zone with the firepower to face down a fiscal crisis, whether that be within the borders of a member or within the walls of a large bank.

In addition, the report on 2011 foresees an energy rubric equipped to carry Germany into 2050, commits to knocking down trade barriers and lays out a plan to make Germany more innovative, more energy efficient and better prepared to face the future.


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