Germany

RGE's Q3 2010 Germany Outlook

Despite the German economy’s disappointing performance at the turn of 2009/10, RGE expects the economic recovery to remain intact and to gain substantial momentum in the coming quarters. The continuous expansion in global demand allows for an export-led recovery in 2010 boosted by Germany’s diversified export structure and the weak euro. In contrast to buoyant export growth, the recovery in final domestic demand (excluding inventories) remains weak at best with only public consumption making a notable contribution to GDP growth. In 2011, RGE expects GDP growth to slow to 1.3% given weaker positive impetus from the external sector as a result of moderating global economic activity and the expiration of Germany’s stimulus package. In light of the ongoing slack in the economy, inflationary pressures remain moderate at 1.1% in 2010 and 1.5% in 2011 (HICP).

Read the Q3 2010 Germany Outlook