Reuters Deutschland: 2006 Institutes: Recovery Only Temporary Upswing

- by Sören Amelang - Berlin (Reuters) - According to the researchers at HWWA and IWH, the [German] economic recovery will be only a temporary upswing. Stagnation or even recession threatens as early as 2007 due to the Government's plans.

The German economy is currently experiencing a "recovery with a Janus's head", warned the economic research group Institut für Wirtschaftsforschung Halle (IWH) in its new growth prognosis on Wednesday. Although increase in the value added tax will drive the 2006 recovery to a greater extent than previously anticipated, it will also create a backlash in 2007. The researchers fear serious problems should the world economy cool off at the same time. The economists also hold out little hope for the job market.
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(in German)

These may be the most negative voices regarding the economy, but most of the prognoses I've read lately seem to point to a jobless recovery.

The fact is that what we're experiencing right now is a top-down disaster. -Paul Krugman