German exports to slow to 6% growth in 2012: federation

29th November 2011, Comments 0 comments

German export growth is set to slow next year but still post a 6.0-percent rise, the exporters' federation said on Tuesday expressing cautious optimism for the coming months.

German exports, the driving force of the country's economy, Europe's biggest, will grow by 12.0 percent in 2011 compared to last year, to reach just over one trillion euros ($1.34 trillion), the federation, the BGA, said.

Their value next year is expected to rise to 1.14 trillion euros. This rate of growth is "absolutely within the long-term average", BGA president Anton Boerner told reporters.

Emerging markets will remain a strong outlet for German exporters, despite an expected slow down in global trade in the coming months due to the eurozone debt crisis and US economic gloom, he said.

"They continue to invest massively in the technologies of the future", in energy sectors as well as telecommunications and transport infrastructure, Boerner said.

He said those markets included not only the emerging giants of Brazil, Russia, India and China, but increasingly also fast-growing partners such as Indonesia, Saudi Arabia, Peru and Ecuador.

However, he warned that, with 60 percent of German exports currently going to its neighbouring trading partners, if the eurozone debt crisis worsened further "all forecasts will be null and void".

And he urged European leaders to send "clear political signals", adding that "the fact we are profiting massively from the euro doesn't mean we have to accept any old horse-trading simply to save the single currency".

Germany is insisting on a tightening of Europe's budgetary discipline as a condition for helping struggling countries.

© 2011 AFP

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