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OECD: German economy faces slow recovery

OECD: German economy faces slow recovery

OECD: German economy faces slow recovery
The German economy faces a relatively slow recovery next year, despite recent improvements in performance.

According to the Organization for Economic Cooperation and Development (OECD), Germany's gross domestic product will recover from a contraction of 4.9 per cent this year to an expansion of 1.4 per cent in 2010 and 1.9 per cent in 2011.

Specifically, the OECD suggested that this growth will be driven by developments in world trade and rises in both private investment and consumption.

In addition, the international body also predicted that Germany's unemployment rate will increase to 9.2 per cent in 2010 from 7.6 per cent at the beginning of this year.

"Growth in the immediate future will be supported by temporary factors like the fiscal stimulus," the OECD said.

However, the organisation claimed that the "improvement in activity could be relatively slow, especially through to mid-2010".

Earlier this week, Frank-Juergen Weise, head of Germany's labor office, predicted that the unemployment crisis will reach its peak at the end of 2010.ADNFCR-1275-ID-19469278-ADNFCR

Posted: 21 November 2009 12:15:00
Filed under: EU Employment, Europe
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