German Growth “Could Create 18,000 Jobs”

04-08-2010 10:32 Moderate growth in the German economy could create 18,000 Danish jobs and increase total Danish production by DKK 12 billion over two years, new calculations by Borsen newspaper show.

According to a new analysis, traditional Danish suppliers to German industry stand to gain most from growth that many analysts expect to be between 2.5 and 3 per cent in 2011.

"We have seen a clear improvement in the German growth figures, primarily driven by exports to emerging economies in Asia”, Steen Bocian, Danske Bank Chief Economist, told Borsen.  “Although here in Denmark we have good reason to worry about our historically low competitiveness, there’s no doubt that we will benefit from a German recovery”

“There is a good possibility that the German growth will be even better if the global economy manages to keep its momentum” Bocian added.

According to Handelsbanken Chief Economist Jes Asmussen, a moderate increase in German consumer spending will play a crucial role in maintaining the current momentum in that nation’s economy.

"On balance, the basic position of the German consumer is relatively healthy, and there are signs that this is having a positive impact on consumer spending” Asmussen said. Although there is no doubt that private consumption has disappointed somewhat, unemployment is beginning to fall, and some consumers are now reporting an increased willingness to spend”.