18 Maret 2012
German Economy Today
Posted on 15.01 by Unknown
St. Levi Press, Berlin
1. In its annual projection for 2011, the German government forecast GDP to grow this year at a real rate of 2.6 percent. Thus, the German economy is growing substantially faster than the eurozone average.
2. The German economy showed a high level of growth in 2010: After an acute economic slump following the financial crisis, GDP grew by 3.6 percent in 2010. This represents Germany’s strongest economic performance since German reunification in 1990. It is above all attributable to the rebound in the global economy. Initial economic stimulus from exports has now spread to domestic demand. Domestic demand is now increasingly becoming the driving force behind Germany’s economic expansion.
3. Real household disposable income rose at a faster pace in 2010 than at any time since 2001. The main factors contributing to this increase include positive developments on the labor market and moderate trends in price levels, together with government tax relief measures which took effect last year.
Unemployment among the youth of today in Germany took an especially precipitous tumble, a full 1.3 percent lower than the national average. 4. These developments are boosting recovery of the domestic economy. Consumer spending increased appreciably in 2010, contributing 0.3 percentage points to overall economic growth. The German government expects real consumer spending to increase by a solid 1.6 percent in 2011.
5. The economic rebound has also resulted in an upswing in employment. The annual unemployment rate fell from 8.2 percent in 2009 to 7.7 percent in 2010. For 2011, unemployment is expected to fall further to 7 percent.
6. Another significant factor in Germany’s success in preventing a dramatic increase in unemployment during the economic and financial crisis was the government-subsidized shortened work week (“Kurzarbeit”). The economic crisis, during which it was implemented, highlighted its benefits dramatically. The program helped employers in Germany tremendously in keeping their experienced and qualified workforce relatively stable throughout the crisis. Once the recovery took hold, they were and are now in a much better position to meet rising demand.
7. The economic recovery continues to face challenges: The German economy is very open and tightly integrated into the global economy. Global economic developments therefore have a major impact on the German economy.
Consolidation of public finances (© picture-alliance/dpa) 8. Germany is implementing the necessary growth-oriented consolidation of public finances. This will involve limiting government spending, reducing subsidies, enhancing incentives, and placing a continued priority on funding for education and research. The package aims to achieve structural consolidation that strengthens growth potential and enhances confidence in the stability of the euro.
9. The last two years have highlighted the need for close international cooperation in economic and financial policies. Only through joint action, namely within the G20, will the world manage to retreat from the brink of a total and global economic and financial meltdown. The recovery was achieved by internationally coordinated monetary and fiscal policy measures whose chief objective was to stabilize financial markets and stimulate economies while avoiding protectionist tendencies.
germany.info
klaus pardosi
1. In its annual projection for 2011, the German government forecast GDP to grow this year at a real rate of 2.6 percent. Thus, the German economy is growing substantially faster than the eurozone average.
2. The German economy showed a high level of growth in 2010: After an acute economic slump following the financial crisis, GDP grew by 3.6 percent in 2010. This represents Germany’s strongest economic performance since German reunification in 1990. It is above all attributable to the rebound in the global economy. Initial economic stimulus from exports has now spread to domestic demand. Domestic demand is now increasingly becoming the driving force behind Germany’s economic expansion.
3. Real household disposable income rose at a faster pace in 2010 than at any time since 2001. The main factors contributing to this increase include positive developments on the labor market and moderate trends in price levels, together with government tax relief measures which took effect last year.
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| (© picture alliance / dpa) |
5. The economic rebound has also resulted in an upswing in employment. The annual unemployment rate fell from 8.2 percent in 2009 to 7.7 percent in 2010. For 2011, unemployment is expected to fall further to 7 percent.
6. Another significant factor in Germany’s success in preventing a dramatic increase in unemployment during the economic and financial crisis was the government-subsidized shortened work week (“Kurzarbeit”). The economic crisis, during which it was implemented, highlighted its benefits dramatically. The program helped employers in Germany tremendously in keeping their experienced and qualified workforce relatively stable throughout the crisis. Once the recovery took hold, they were and are now in a much better position to meet rising demand.
7. The economic recovery continues to face challenges: The German economy is very open and tightly integrated into the global economy. Global economic developments therefore have a major impact on the German economy.
 |
| consolidation of public finance-copyright alliance/dpa |
9. The last two years have highlighted the need for close international cooperation in economic and financial policies. Only through joint action, namely within the G20, will the world manage to retreat from the brink of a total and global economic and financial meltdown. The recovery was achieved by internationally coordinated monetary and fiscal policy measures whose chief objective was to stabilize financial markets and stimulate economies while avoiding protectionist tendencies.
germany.info
klaus pardosi
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