Salient to Investors:
Germany’s council of economic advisers said:
- The German economy will expand 0.8 percent in 2013, the same as this year, as the euro region’s sovereign debt crisis saps demand for German exports.
- The ECB’s bond-purchasing plan is a last resort at best and should be ended as quickly as possible because it blurs the line between monetary and fiscal policy.
- The euro region needs an improved mechanism to ensure budgetary discipline, a banking union to stabilize the financial sector and insolvency rules for states.
- Germany’s labor market will remain very stable with unemployment at 6.9 percent on average in 2013 versus 6.8 percent in 2012.
- Germany’s budget will be close to balance this year and next.
GfK said consumer confidence will climb to a 5-yr high this month even as the economy cools.