Cautious optimism
April 15, 2010
Germany's five leading economic institutes say the country's economy will continue its slow recovery, predicting growth rates of 1.5 percent of gross domestic product (GDP) this year, and of 1.4 percent in 2011.
These predictions are more positive than those of the German government, and also eclipse the group's last prognosis six months ago.
The study described the job market as "remarkably robust", predicting a marginal reduction in the unemployment rate, from 8.2 percent in 2009 to 8.1 percent in 2010. That would equate to roughly 100,000 more Germans finding work this year.
"There still is an upward tendency of the economy after its deep plunge in the financial crisis," economist Joachim Scheide said when presenting the findings in Berlin on Thursday, pointing to an increase in industrial orders, improving export levels, and greater confidence among employers.
The recent global recession pushed Germany into its worst economic slump since World War II, with GDP dropping by five percent in 2009.
However, despite their relative optimism, the economists predict that Germany will not recover to 2008's pre-recession production levels before 2013.
msh/AP/dpa/AFP
Editor: Chuck Penfold