facebook
twitter
rss
account
search
search
 

Bundesbank lowers expectations for 2013

Dec. 7, 2012 at 1:50 PM   |   Comments

BERLIN, Dec. 7 (UPI) -- Germany's central bank said Friday that the country's economy would teeter on the brink of a recession in 2013.

On top of a forecast of 0.4 percent growth for 2013, down from an earlier prediction of 1.6 percent, the Bundesbank said, "There are even indications that economic activity may fall in the final quarter of 2012 and the first quarter of 2013."

At least informally, the common definition of a recession is two consecutive quarters of economic contraction, which would put Germany in a recession at the end of March, CNN reported.

Germany has the European Union's largest economy and has taken a principle role in international efforts to rescue ailing eurozone allies, such as Greece, Ireland and Portugal.

However, German voters have also voiced concern over Germany paying the lion's share of international bailout efforts and this concern could rise if Germany's own economy begins to flounder.

In addition, the unemployment rate in Germany has been rising and the Bundesbank now predicts it will reach 7.2 percent in 2013, up from the current rate of 6.8 percent.

© 2012 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian bank boss feeling sanctions pain Russian bank boss feeling sanctions pain
2
Navy's Triton surveillance drone flies cross-country Navy's Triton surveillance drone flies cross-country
3
Ukraine's State Guard Service receives armored personnel carriers Ukraine's State Guard Service receives armored personnel carriers
4
Additional sub-components being made for Ballistic Missile Defense radar Additional sub-components being made for Ballistic Missile Defense radar
5
Army deploying JLENS radar system to help protect Washington, D.C. Army deploying JLENS radar system to help protect Washington, D.C.
Trending News
Video
x
Feedback