With the marked improvement in business expectations, the prospect grows that companies will shake off their reluctance to invest. Although businesses stepped up investment in machinery and equipment in the second and third quarters of this year, investment demand remains at a low level. We now expect to see a substantial pickup in investment demand in the winter months of 2013/2014. As a result, all components of domestic demand will soon be contributing to growth. Moreover, the Ifo test shows that exports can be expected to provide a stronger boost. This is in line with a series of indicators showing that the world economy is gradually gathering momentum.
We are expecting buoyant quarterly GDP growth of 0.6% in the final quarter of this year. Average growth for 2013, however, will come in at only 0.5%. Next year prospects are still good for growth of around 2%.