Please activate JavaScript!
Please install Adobe Flash Player, click here for download
ePaper created 2012-04-27, 18:36:07 | version 1.23.1
FROM PANIC SAVING TO CONSUMER OPTIMISM Unlike in the rest of Europe, the stable job market stimulated German hopes for rising incomes. In the past, the expectation would have been that under the prevailing circum- stances, Germans would have been very keen on saving to give themselves a buffer against the threatened economic downturn. How- ever, record-low rates of interest and a severe loss of confidence in the financial markets drastically curtailed German consumer incli- nations to save. 22011 proved to be an emotional roller coaster for Germans, with the crisis in the eurozone and stark warnings of a potential global eco- nomic collapse making headlines. At the same time, unemployment fell to a record low of under three million and the German econ- omy grew significantly, with GDP up 3.0%. Fears of a potential recession and the threat of some countries and banks going bankrupt had a marked negative effect on the economic expecta- tions of German consumers. The indicator went into freefall over the course of the year, although at +30, the overall picture in Ger- many remained positive compared with its European neighbours. By way of comparison, economic expectations ran at an average of -30 in France, -34 in Italy and as low as just -49 points in Portugal and Greece. stances, Germans would have been very keenomy grew significantly, with GDP up 3.0%. Fears of a potential recession and the threat ofFears of a potential recession and the threat of Clear decline in the propensity of Germans to save, due to the debt and banking crisis and low interest rates Full centers profit from the good atmosphere Borsalino made of 100% paper from C&A Vintage print t-shirt from s.Oliver Bermudas with belt from s.Oliver Source: European Commission consumer survey, indicator calculation: GfK Marktforschung DES Annual Report 2011 13