Economic growth in Germany forecast to be even stronger than expected

The Federal Association of German Chambers of Commerce and Industry (DIHK) has just corrected its growth forcast for 2007 from 1,5% to 2.3%. The new forecast is based on a recent survey from February. After a short period of slowing down at the beginning of 2007, economic growth in 2007 has in the meantime almost become as strong as in 2006, said Mr. Martin Wansleben, chief executive officer with the DIHK on Wednesday in Berlin.

»This is also good news for the labour market: we expects 500.000 jobless people less in 2007 as compared to 2006. « Even though there was and is a risk of a slowing down economy due to the VAT increase by three percent, the down swing will not be as strong as expected in autumn 2006. This is due to expectedly more exports. The feared slowing down of business activities in the USA has so far failed to come.

„Maybe the most remarkable finding of the survey», according to Wansleben, is the fact that Germany as a production site is currently having a comeback. The best confirmation of this fact is said to be the strongly increased investment plans by companies in Germany.

According to the study, 30% of companies believe that business is going to be more successful over the next twelve months, 57% expect the situation to remain unchanged and 13% think that things will become worse so that in contrast to the fears in autumn 2006 the economic upswing is back according to the DIHK.

The findings of the Konjunkturumfrage Februar 2007 survey and the DIHK forecast for 2007 are available for free on the internet. GERMAN