A4 für Copyshop GB.indd - Bayerische Landesbank

24 Economic situation
} Growth to remain
restrained in 2005
Outlook for 2005
The global and domestic economic situations do not betoken a more sprightly rate of
recovery for Germany in 2005. Nor, however, is a slowdown anticipated, as forecasts
might at first seem to indicate. Adjusted by the lower number of working days in 2005,
the growth rate will remain more or less stable, at an expected 1.2 percent. This is still
too low to effect lasting improvement in the labour market or in the public sector.
In 2005, the global economy will no longer experience such a heady growth pace.
This applies equally to North America and Asia. Furthermore, appreciation of the euro
damages the price competitiveness of German suppliers. The outlook for domestic
demand remains mediocre, unless employment levels take off and companies restore
confidence in Germany’s industrial competitiveness. Thus, a self-sustaining upward
trend is not yet in store for Germany.