German economics minister: only "temporary dent" to economy

Jan 19, 2012, 10:51 GMT

Berlin - German Economics Minister Philipp Roesler voiced optimism on the economy on Thursday, saying there would be only a 'temporary dent' in German growth this year, with a pickup again next year.

Speaking in a parliamentary debate, Roesler repeated his forecast that the economy would grow 0.7 per cent this year, down from 3 per cent in 2011. It is forecast to pick up again in 2013, when Germany will hold a general election, with growth of 1.6 per cent.

'We expect only a temporary dent in economic growth, definitely not a recession,' he said. 'We intend to work together, to stabilize the European Union, free up domestic growth forces by securing skills and raw materials, by a good energy policy, with new markets, new opportunities, innovation, research and technology.'

Roesler attacked a programme set up under a previous government to subsidize photovoltaic solar panels, which provide only 3 per cent of Germany's electricity and will cost the government 6 billion euros (8 billion dollars) this year.