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German growth forecast at 0.8pc in 2013

Tuesday, January 29 11:41:10

Strong demand for German goods from trading partners outside the euro zone will boost exports this year and allow Europe's largest economy to grow by around 0.8 percent, the BDI industry federation said today.

The forecast for gross domestic product (GDP) is double that of the German government, which said earlier this month that trade, the traditional driver of the economy, would likely be a drag on growth this year.

"Weaker exports in the euro zone will be more than compensated by exports outside of Europe," the BDI said in a statement. "Overall, the BDI expects an increase in exports of at least three percent over the course of the year."

BDI President Ulrich Grillo said equipment investment by companies in the machinery and auto sectors were also likely to rise in 2013.

The BDI also criticised the government for its management of Chancellor Angela Merkel's "Energiewende", or shift out of nuclear power, saying German energy costs were among the highest in the world.

"Germany has distanced itself from the top priorities of any energy policy, namely that it be secure, clean and affordable," the group said. (C ) Reuters