The German economy will avoid recession in 2013 and achieve a growth rate similar to this year’s, said Dieter Hundt, head of the German employers’ association, in an interview with Reuters.
-I believe that Germany will not plunge into recession next year and that the economy will grow at a similar pace as this year, said Hundt.
The German economy has so far managed to withstand the problems of the eurozone, growing by 4.2% in 2010 and by 3% last year. In 2012, it is estimated that the German gross domestic product will grow by about 0.9%.
According to the latest surveys, analysts estimate that in 2013, GDP could grow by about 0.7%, while they expected a growth of 1.3% until mid-year.
Hundt also expressed concern about demands for further significant wage increases in Germany in 2013, after workers have already seen a noticeable increase in earnings this year, partly due to the intervention of Chancellor Angela Merkel and members of her government.
Although unions are again calling for a large wage increase in 2013, Hundt believes that wages will be increased moderately. This optimism is based on the belief that unions are aware of the slowdown in the growth of the German economy and will take this into account during wage negotiations.
