Siemens 2011 Annual Report Download - page 176

6 A. To our shareholders
23 B. Corporate Governance 51 C. Combined management’s discussion and analysis
52 C. Business and operating environment
80 C.2 Fiscal  – Financial summary
83 C. Results of operations
101 C. Financial position
114 C. Net assets position
117 C. Overall assessment of the economic position
118 C. Report on post-balance sheet date events
119 C. Report on expected developments and
associated material opportunities and risks
135 C. Information required pursuant to Section  ()
and Section  () of the German Commercial
Code (HGB) and explanatory report

C.. Economic environment
C... WORLDWIDE ECONOMIC ENVIRONMENT
The global economy is continuing to recover in , although
the pace of growth has slowed considerably as the year has
progressed. On the one hand, this slowdown is cyclical, as a
normal response to the strong recovery process of last year. At
the same time, however, economic growth is also being in-
hibited by the savings and consolidation policies adopted by
most industrialized countries. Furthermore, the rising uncer-
tainty caused by the escalating sovereign debt crisis in a num-
ber of industrialized countries, as well as concerns about the
stability of the banking sector are having a negative impact on
investment and private consumer spending. IHS Global In-
sight is predicting overall growth of .% in global gross do-
mestic product (GDP) in  – driven by high dynamic
growth experienced by emerging economies – following a
growth in global GDP of .% in real terms in .
From a regional perspective, IHS Global Insight predicts that
the Europe, C.I.S., Africa, Middle East region will see eco-
nomic growth of .% compared to growth of .% in .
Within the region, the countries in our Africa Cluster are expe-
riencing the highest GDP growth rate with .%, down from a
.% GDP growth rate a year earlier. This development is fa-
vored in part by high commodity prices, and also by this re-
gion’s relative independence in terms of global economic
trends. The C.I.S. countries are also profiting from the devel-
opment of commodity prices. IHS Global Insight predicts that
the C.I.S. GDP will grow by .% in  following a .%
growth in GDP reported a year earlier. The Middle East Cluster
can expect a downturn in investments and tourism stemming
from social and political instability in some countries. With
forecasted GDP growth of .%, this cluster will probably fall
far short of the growth levels achieved last year. Within Eu-
rope, there is a significant divergence in economic trends for
 – as was also the case a year earlier. A number of
coun-
tries in Northern and Central Europe are significant growth
drivers in the region. IHS Global Insight expects Germany to
see its GDP grow by .% based on its strong export economy.
Last year the German GDP grew by .%. In , our cluster
Central Eastern Europe is expected to grow by .% following
the .% recorded a year earlier. The GDP is expected to stag-
nate or even contract in several southern and western Euro-
pean countries that have been hit particularly hard by the sov-
ereign debt crisis in . The European Union is experiencing
a significant downturn in GDP growth as the year progresses.
This is exacerbated by high commodity prices, efforts to re-
duce public spending and the escalating sovereign debt crisis,
which is undercutting consumer and producer confidence.
In the Americas region, GDP growth in  is slowing down
perceptibly compared with last year. For this region IHS Global
Insight predicts GDP growth of .% for  following growth
of .% achieved in . Growth in the U.S. is declining
sharply. IHS Global Insight forecasts only a slight GDP increase
of .% in  following the growth rate of .% achieved by
the U.S. in . High unemployment, a persistently weak
housing market and high public and private debt are having a
negative impact on the key consumer sector in the U.S. The
countries of Latin America, however, are growing much fast-
er. The main growth drivers are those countries that export
raw materials, such as Argentina, Peru, Chile and Uruguay. In
contrast, GDP growth in Brazil is dipping significantly. The
strengthening of the country ’s currency (the Brazilian real)
coupled with the government’s efforts to curb inflation have
contributed to the slowdown. After GDP growth of .% in
, IHS Global Insight forecasts that Brazil is experiencing
an increase of .% in GDP for .
Growth in the Asia, Australia region in  is also compara-
tively muted, although GDP is expected to climb at a markedly
stronger pace than that of the other two reporting regions. IHS
Global Insight forecasts GDP growth of .% in  following
an increase of .% in . Key factors triggering this decline
were the catastrophic earthquake and tsunami in Japan which
temporarily brought not only the nation‘s economy but also the
supply chain in other Asian countries to a standstill. According
to IHS Global Insight, Japan’s GDP is expected to decline by
.% in , whereas it increased by .% in . China con-
tinues to record strong GDP growth. IHS Global Insight predicts
GDP growth of .% in China in  following the .%
World real GDP growth (in % compared to prior year) 
     
1 According to IHS Global Insight as of October , ;
growth rates provided by calendar year.
2 Estimate for calendar year .
4.2
1.6
4.2
(2.1)
3.0