Economic Environment

In the first half of 2010 the world economy recovered more quickly than expected. Especially, industrialized countries were able to benefit from the positive impulses; production volumes and international trade increased noticeably. On the basis of this development the Kiel Institute for the World Economy (IfW) increased its economic forecast. The experts are now expecting the global gross domestic product (GDP) to grow by 4.4 percent in 2010. In March they had still assumed a growth rate of 3.7 percent.

The economic dynamism also continued in Germany, where industrial production picked up substantially. In addition, the declining Euro exchange rate had a positive impact on the export business.

A similar development was observed in the entire Euro zone. In spite of the high level of indebtedness of some European countries the economic experts therefore expect a positive growth of 1.3 percent for the year 2010.

The economic output of the U.S. also grew in the first half of 2010, albeit less vigorously so in the second quarter than in the first. There, forecasts assume a growth rate of 3.0 percent in 2010.

Towards the end of the second quarter economic risks have increased again worldwide, according to market experts. This might cause the positive economic development to be slowed down again in the second half of the year. Expected macroeconomic environment