Sunday, December 9, 2012

The Next Year in Finance

For the last two years....most countries around Germany had a recession underway or stagnant economic  trends.  Based on various business reports, the analysts are finally coming to predict that 2013 will be a slow-down period for Germany.  Few will say the word recession....but you can expect unemployment to go up a little and the news folks will likely spend most of the year talking about the economy (negatively).  On top of that, it's an election year.....so you have to blame the Chancellor (Merkel) for the dip.

The problem with this dip predicted for 2013....it isn't near as bad as what most of Germany's neighbors are facing (France, Spain, Italy, etc).  When you compare their woes against Germany....Germany still looks fairly decent for business trends in 2013.  Almost every country in Europe would prefer to have Germany's worries than their own.

What should you expect?  Because of the political nature of 2013, there's going to be lots of negative talk about various trends....even if they are minor in nature.  Folks will aim at certain regions of Germany.... particularly the east side....on statistics that look dismal.  The truth?  Several of the eastern states of Germany have looked negative for a decade, so it's not exactly a new trend.

Businesses in 2013?  You can probably expect some major businesses to look at inefficiency and ways to make cuts.  They all went through the same exercise five years ago, and came out of the 2008 period looking pretty good.  What most of them don't want.....is a massive change in government or financial planning changes leading to more taxes (like France) or instability (like Greece).

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