BERLIN (Dow Jones) – The Federation of German Industries (BDI) provides for 2011 remains favorable economic outlook for Germany and expects a continuation of the upswing. (Photo: BDI)
"The BDI is a growth in gross domestic product of 2.5% stake in the current year possible," said BDI president Hans-Peter Keitel in Berlin on Tuesday at the annual kick-off press conference of his association. The projected growth is very robust, "said Keitel.
The momentum built up last year by proposing even to the current year. "The order books are largely filled well," said Keitel. Although the dynamics of the global economy will ease slightly and correspondingly increase German exports less. "The bottom line of trade, however, brings other positive effects, particularly on investment," said Keitel. The BDI expects the current year with a rise in German exports by 7.3% and imports by around 7%.
An expected significant decline in exports to euro-zone countries such as Greece and Ireland, which currently operates a clear Konsoliderungskurs is to accept the view of Keitel in the interest of long-term partnership. Only healthy economies guaranteed in the future business partnerships. "Short-term rehabilitation may also require sacrifice on our side," said the president of the BDI.
In 2011 Germany would gain the increased capacity utilization expansion investments in the foreground instead of the previously replacements important. The favorable labor market conditions and improved employment prospects should also spur consumer spending.
"However, there are a number of sources of danger for the German economy," warned the president of the BDI. These included the exchange rate of the euro and the necessary security of energy and raw material supply. The prices of raw materials and access to rare earth formed an increasingly significant bottleneck for German companies. The risks could be from BDI-term, however, are more virulent in the medium term.
Apart from the strong commodity price rise burden and the increasing regulation of commodity markets. For the first time the development in the extractive sector on the G20 agenda will be. "This is an important signal that it is a key economic policy issue," said the president of the BDI. The focus of the talks would open the market and want transparency in the extractive sector. French President Nicolas Sarkozy spoke out when he presented his program for the G20 presidency on Monday in Paris for state intervention in commodity markets and made a number of suggestions.
The BDI president warned that while the recovering economy, the financial environment is not sustainable. "They need to ensure that our financial crisis verhagelt’s economic achievements," said Keitel. Healthy conditions in financial markets could be no question. Keith stressed that the current turmoil to the European single currency reflected "no € crisis but a crisis of European public finances" resist.
The BDI President called for the establishment of binding rules of debt in the national constitutional rights, because the current rules of the Stability and Growth Pact, the indebtedness could have prevented. Moreover, according to estimates by Keitel greater coordination of financial, economic and budgetary policy in the EU can not avoid. "Too high level of direct intervention by governments, however, we reject," stressed the president of the BDI.
At the same time asked political leaders to Keitel, the disputes and discussions to find solutions to the crisis unsubscribe € publicly, and so to unsettle the markets. Rather, should "the states and experts" do this along the lines of the Paris Club behind closed doors, can quickly come to concrete results and implement them. The options currently under discussion would not comment on Keith.
-By Beate Preuschoff, Dow Jones Newswires, +49 (0) 30-2888 4122
beate.preuschoff @ dowjones.com
DJG / bep / mle / dok