- BERLIN: German exports rose 12 percent to a record 1,075 billion euros in 2011 but the pace of growth will slow in 2012 to some 6 percent as the global economy cools, the exporters’ association (BGA) said, warning the debt crisis remained a powerful threat.
“Exporters can look back on an excellent 2011 and look forward to 2012 with cautious optimism,” BGA President Anton Boerner said in a speech.
Medium-sized firms producing investment goods and exporting to dollar markets were particularly positive about next year’s prospects.
But while emerging markets continued to show strong demand the euro zone debt crisis hung like a “sword of Damocles,” he said, threatening the real economy with a credit crunch.
“It is absolutely crucial that euro zone governments break this cycle of doubt and take convincing steps to swiftly consolidate budgets,” he added.
Germany, Europe’s powerhouse economy, likely grew 3 percent in 2011, but momentum looks set to slow sharply next year as persistent euro zone debt woes sap confidence and erode European export markets.
Most analysts believe domestic demand — rather than exports — will have to carry the economy next year.
The government forecasts German economic growth of 1 percent in 2012, although the OECD estimates expansion of just 0.6 percent and said the country seems to have entered a mild recession.