–Press:Institutes See Deficit 4.9%/GDP In 2010, 4.2%/GDP In 2011
BERLIN (MNI) – Germany’s leading economic research institutes
expect annual average unemployment in the country to sink to 3.382
million this year from last year’s 3.423 million, mainly due to
demographic reasons, German business daily Handelsblatt reported in a
pre-release of its Thursday edition.
For the coming year, the institutes expect annual average
unemployment to fall further to 3.313 million, the paper wrote citing
from the institutes’ joint spring forecasting report to be released on
Thursday.
The country’s fiscal situation will be worsening further due to
sinking tax revenue and rising expenditures, the institutes state in
their report according to Handelsblatt. The total public budget deficit
is predicted by the institutes to rise 4.9% of GDP this year from 3.3%
last year. In 2011, it is forecast to decline slightly to 4.2% of GDP,
due to the exit from stimulus measures and first consolidation measures.
The institutes see German GDP growing by 1.5% in 2010 and by 1.4%
in 2011, Handelsblatt had reported on Tuesday.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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