The good prospects are based on the all-embracing ... - ALNO AG

<strong>The</strong> German economy was supported by rising foreign
demand: exports increased by 11.4% over the previous
year, with <strong>good</strong>s exceeding EUR 1 trillion in value for the
first time ever. 2 At the same time, domestic consumption
increased more strongly than at any time in the last five
years. 3
In the eurozone (the 27 Member States of the European
Union), GDP was 1.6% up on the previous year. 4 Austria
and the United Kingdom, two important markets for
ALNO, reported growth of 2.9% and 0.7%, respectively;
Switzerland grew by 1.7%. <strong>The</strong> Deutsche Institut für
Wirtschaftsforschung Berlin (DIW) expects the German
economy to grow by 0.6% in 2012. <strong>The</strong> DIW Berlin expects
real gross domestic product in the eurozone (EU 27) to
decline slightly, while global GDP is expected to increase
by almost 4%. 5
In the kitchen industry, job market developments and
investment activity in housing construction <strong>are</strong> important
indicators of consumption and investment by consumers.
Unemployment continued to fall in 2011, averaging 7.1%
for the year (2010: 7.7%) 6 This is also one of the main reasons
underlying the 1.5% rise in private consumption after
adjustment for prices. 7 Because the furniture market is a
so-called "postponable" market, it is particularly affected
by private consumer spending. Depending on their personal
financial situation, consumers will either go ahead
with or put off the acquisition of such consumer <strong>good</strong>s.
Key interest rates remained at a historically low level in
2011. In response to the euro crisis, the ECB lowered
its key lending rate to the former value of 1.0% in spring
2011 after previously raising the rate on two occasions.
According to the German Council of Economic Experts, low
interest rates were one of the main reasons underlying the
6.5% rise in investments on housing construction in 2011.
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2 Federal Statistical Office, Press Release No. 044 dated
8 February 2012
3 Federal Statistical Office, Press Release No. 010 dated
11 January 2012
4 Eurostat, Press Release dated 15 February 2012
5 Deutsches Institut für Wirtschaftsforschung (DIW), Berlin,
Press Release dated 4 January 2012
6 Federal Employment Agency, labour market statistics for
2011 and 2010
7 Federal Statistical Office, Press Release No. 010 dated
11 January 2012
8 German Council of Economic Experts, Annual Economic Report
2011/12
sinGLE-Entity and GRoup manaGEmEnt REpoRt | EConomiC REpoRt
<strong>The</strong> Council expects growth of 2.9% in 2012. 8 Munich's
Ifo-Institut expects the number of housing units completed
to rise in the next few years, due above all to the need for
replacements in several parts of Germany. <strong>The</strong> institute
has <strong>based</strong> its construction forecast on an average rise of
almost 1% p.a. in the period up to 2020. 9
Despite an inflation rate of 2.3% (2010: 1.1%) 10 overall
purchasing power also increased in Germany in 2011.
Real income rose by 1.1% over the year (2010: 1.5%) 11
With basic conditions developing favourably, furniture
production in Germany grew by 6.3% in 2011; in terms
of value, 4.5% more kitchen furniture was produced than
in 2010. 12
According to a study on purchasing power by "GfK Geo-
Marketing", purchasing power in Germany is expected
to increase only slightly in 2012. <strong>The</strong> average German
consumer will be nominally able to spend EUR 413 more
than in 2011, according to the study; that is equivalent
to a nominal rise of 2%. At the same time, however, the
GfK also points out that the German Bundesbank expects
inflation to average 1.8% in 2012. Real purchasing power
will consequently increase by only 0.2%. Total purchasing
power in Germany is estimated by the GfK to be in the
order of EUR 1,636.2 billion in 2012. 13
furniture trade
In 2011, the furniture trade was able to continue the
previous year's positive trend, with growth averaging
between 2.5% and 3% so that sales once again topped
the 30-billion-euro mark for the first time in several years.
<strong>The</strong> Federal Association of the German Furniture, Kitchen
and Furnishing Trade (BVDM) has estimated that German
consumers spent EUR 30.4 billion (including VAT) on
furniture, kitchens and furnishings in the year just ended.
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9 Ifo Institut, Construction forecast until 2020
10 Federal Statistical Office, Press Release No. 011 dated
12 January 2012
11 Federal Statistical Office, Press Release No. 107 dated
26 March 2012
12 Federal Statistical Office, Press Release No. 019 dated
16 January 2012
13 GfK GeoMarketing, Press Release dated 13 December 2011
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