Best prospects for economic development since 1991

The “Industry report 2006/2007″compiled by the Association of German Chambers of Commerce (DIHK) is quite encouraging. This report forecasts quite a robust industrial upswing and 30.000 new jobs. According to a current DIHK survey conducted among member companies, in 2006 the assessment of the economic situation by industrial enterprises has even been as positive as never before since the year 1991.

Even though there are some uncertainties as regards domestic demand and labour market as well as tax system reforms, experts nevertheless believe that industrial growth will compensate for the VAT increase in the long run. Therefore there may only be a minor temporary weakening of economic growth at the beginning of 2007.

Following a real industrial production increase of about 5% in 2006 the DIHK expects production to grow by about 3% in 2007. This will also affect the industrial labour market so that the DIHK expects up to 30.000 new jobs there next year.

All the findings of the survey are available in PDF format on the DIHK website. GERMAN