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Andreas Scheuerle

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These are not nice numbers. We don't expect a recession in Germany, but we are already moving towards stagnation.

Companies are still very cautious because the outlook is uncertain and jobs are an investment into the future. They know that 2006 will be a good year but also expect 2007 to be weaker and that's a reason to keep hiring on hold.

We expect unemployment to continue to decline over the course of this year and next. The increase in January provides no cause to change this upbeat assessment.

Exports are strong and even consumption is beginning to bounce back. Companies appear to be willing to start hiring again.

Order books are full and people are operating closer to capacity, so that companies are building up employment again.

Exports are thriving, but will tail off at the end of the year as the world economy weakens.

There will be a rude awaking early next year. We expect first-quarter gross domestic product to contract.

A key hindrance to growth is disappearing.

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