Top economists: Germany bouncing back after Q4 dip

Associated Press

FRANKFURT, German (AP) — Germany's leading economic institutes say the country is bouncing back from a downturn at the end of last year.

In their twice-yearly report released Thursday, the institutes say Europe's biggest economy should see growth, moderate inflation and fewer unemployed this year. Fears that the eurozone debt crisis will hurt Germany have lessened and companies are well-positioned to export to emerging markets.

The upbeat outlook came even as the growth forecast was trimmed to 0.8 percent from an earlier forecast last of 1.0 percent last October. They foresee unemployment falling to an average of 6.7 percent for 2013 from 6.8 percent in 2012.

The German economy shrank 0.6 percent in the fourth quarter of last year but many economists think it is returning to growth.

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