Juergen Michels German Quotations

For 2006, I see very strong German exports and increasing investment, but I don't think it will have a big impact on the labor market and that's why consumption will remain relatively weak.

The labor market situation won't dramatically improve and oil prices are still a problem. Relatively weak consumption is one of the reasons why the German economy won't gather a lot of speed this year.

The data from the German states suggests that the increase in inflation at the start of the year is lower than expected so that partly offsets the pressure for a rate rise.

German manufacturers have rather good support from the orders side. In addition, they reduced their debt and financing conditions have improved.