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Economy seen slowing sharply next year

The eurozone debt crisis looks set to slam the brakes on growth next year in the German economy, Europe's biggest, a panel of economic advisors to the government warned on Wednesday.

Published: 9 November 2011 14:12 CET
Economy seen slowing sharply next year
Photo: DPA

The so-called “Five Wise Men and Women” or German Council of Economic Experts predicted that Gross Domestic Product growth will slow to just 0.9 percent next year from an anticipated 3.0 percent in 2011 in their latest updated forecasts.

“At 3.0 percent, the GDP growth rate for 2011 will be very strong once again, even if it will not quite be able to maintain the momentum seen in 2010,” when it topped 3.7 percent, the experts wrote.

The risks to growth have increased in recent months, resulting from a fragile global economic environment and the “vicious circle of sovereign debt and banking crisis” that the euro area has been caught up in.

The panel’s forecasts are in line with the government’s own projections – published last month – which saw growth slowing from 2.9 percent this year to 1.0 percent next year.

Nevertheless, the council’s president Wolfgang Franz cautioned that the forecast was made on the assumption that the debt crisis would be resolved.

“If the escalation of the crisis is confined to the euro area, output will grow in 2012 by just 0.4 percent. If global distortions concurrently lead to a stagnation of world trade, Germany will experience a slight decrease in GDP in 2012,” he said.

A raft of recent data, including sentiment surveys as well as output indicators, all suggest that Germany, Europe’s economic engine, is running out of steam.

The latest manufacturing orders and industrial output data disappointed and key confidence barometers, such as the Ifo business climate index and the ZEW and GfK surveys, are all heading southwards.

The all-important automobile sector is suffering too, notching up growth of a meagre one percent last month.

Exports are the main driver of growth in Germany and new data showed them a a record high in September, pushing the trade surplus to a three-year high in September.

That is because Germany is reaping the benefits of a deep economic restructuring that has made its companies more competitive on the world stage. But analysts insist that a possible recession in the 17 countries that share the euro will not leave Germany unscathed.

AFP/mry

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Published: 7 February 2024 10:54 CET
Updated: 10 February 2024 08:20 CET
Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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