8/14/2009

Bavaria’s Economics Minister Zeil comments on growth figures in Germany for the second quarter of 2009

MUNICH    “Economic development in Germany has stabilized appreciably in the second quarter. Industry is once again expanding. We have bottomed out”, commented Bavaria’s Minister of Economic Affairs, Martin Zeil, referring to the report just issued by the German Federal Bureau of Statistics (Statistisches Bundesamt) on economic development in Germany in the second quarter. According to Zeil, the figures now available are much better than expected. The chances of further growth impetus in the second half of the year had therefore increased.

All the same, the Minister did not see any reason for exaggerated euphoria. Even if industry was recovering again, there was no guarantee that we would automatically return to the old growth rates after such a precipitous crash. Zeil said: “It is too early yet to give the all-clear. Hard times are still in store for us especially on the labor market.”

Now that the economy is picking up again, Zeil is in favor of quickly improving the framework conditions for dynamic growth. In particular, this included removing the parts of the corporate tax reform hindering investment. “Especially young and innovative companies are unduly burdened by certain aspects of this reform. In this respect, the new Federal Government will have to quickly introduce some improvements”, Zeil continued. In the short term, it was a matter of preventing a major credit crunch in the SME sector. Zeil: “We must not let the delicate young seedlings of economy recovery wither for lack of liquidity. We will make sure that the banks properly fulfill their role as loan brokers.”

According to the German Federal Bureau of Statistics, economic output in Germany went up in the second quarter by 0.3 percent compared with the previous quarter after allowing for price, seasonal and calendar adjustments. Compared with the same quarter of the previous year, output is still 5.9 percent down after allowing for calendar adjustments.
 

Source: Invest in Bavaria

For more information about establishing a location in the State of Bavaria, please contact Jan Danisman 212-317-0588 INFOatBAVARIA.ORG