Germany independent council of economic advisers were less optimistic than the government on the economy's outlook, according to the council's latest forecasts. The council of the so-called 'wise men' predicts the gross domestic product to grow 0.8% in 2012 and 2013, while the government forecasts the economy to grow 1% next year, following a 0.8% growth this year.
The economic momentum in Germany has progressively slowed in the course of 2012 in the wake of the euro crisis. However, the council said the deceleration in the pace of economic activity would bottom out in the fourth quarter of 2012.
The council further noted that there is a continuing need for action in Germany in the field of economic policy. Reforms that have been implemented or initiated, particularly in connection with the labor marker and pension system, should not be retracted, the report said.
Exports are seen growing at a subdued pace of 3.9% and 3.8% in 2012 and 2013 respectively compared to 2011. Import growth is expected to ease to 2.5% this year, before recovering to 4.2% next year.
However, the unemployment rate is expected to edge higher to 6.9% next year from 6.8% this year, although this is lower than 7.1% in 2011.
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