DIHK survey predicts one percent growth for German economy in 2012

10/25/2011

Over 28,000 German firms responded to the latest survey of the Association of German Chambers of Industry and Commerce (DIHK) on the business activity in 2012. A short version of the report “The Economic Growth and Expectations” is now available in English language.

Companies plan to continue to invest, grow, and hire in 2012. Nevertheless, they are affected by the uncertain economic climate. DIHK survey respondents now expect the gross domestic product (GDP) will grow by 1.0% in 2012. The DIHK estimated the economic growth to be about 3.0% in 2011. This slowdown is a usual economic cycle, said DIHK CEO Martin Wansleben. However, the survey also shows that companies still consider the current situation as ”very good “, especially those dependent on domestic consumption.

The DIHK also predicts a reduction of unemployment by 150.000 to less than 2.8 Million people. Companies are still looking to recruit, particularly in the manufacturing industry and service sector. As Germany’s major export partners (mainly European and American countries) need to regain their financial strength, the companies’ expectations with respect to exports are considerably lower in the fall of 2011. However German companies are not reliant on individual markets. In the up-and-coming markets of Asia, Latin America and parts of Eastern Europe, the forces for growth are still intact and supporting exports. The full report can be found here (PDF)

More information: DIHK Flyer "Economic Trends in Germany, Fall 2011 (PDF) and GDP forecast for Germany (PDF)