MUNICH Bavaria’s Minister of Economic Affairs, Emilia Müller, sees the growth figures for the 2nd quarter of 2008 as a result that measures up to expectations. In particular the fall in construction activity did not come as a surprise, as mild weather meant that many contracts could be completed before the end of the 1st quarter. "There is no doubt that the economic situation has become more difficult in the last few months. Bavarian industry cannot escape this either. All the same, this is still no reason to be pessimistic. On the whole, our companies are currently much better off than just a few years ago", the Economics Minister said.
Even if the early indicators had suggested rather slower economic momentum in the second half of the year, a slump is unlikely. This view is also backed up by the fact that some of the factors adversely affecting the economy had recently reduced in impact. Müller: "The skyrocketing of the Euro has been halted. And the oil price is in the meantime already 35 Dollar below the peak rates of the past few weeks. This trend will help our export companies, cushion inflation and ease the burden on industry and consumers."
Given this background, the Minister of Economic Affairs is sticking to her growth forecast: "For Bavaria, a 2 in front of the decimal point is once again a realistic target for this year. And the Bavarian labor market should continue to develop positively, despite the plans of some major companies to cut jobs." Small and medium-sized companies were still taking on staff.
Source: Invest in Bavaria
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