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OECD's 2012 Economic Survey of Germany examines recent economic developments, policies and prospsects as well as a more detailed look at labour market reforms and climate change policies. Following a rapid recovery from the 2008-09 recession, growth has slowed in the second half of 2011 and the economy is facing a soft patch with significant downside risks to activity. In the domestic front, a return to lower growth rates from the strong prior upswing was to be expected from a cyclical perspective as potential growth remains weak. The downswing is excerbated by the substantial deterioration of world trade growth and a loss of confidence due to the euro area debt crisis. The OECD states that more can be done to strengthen the growth potential, not least in view of rapid population ageing. Structural policies should focus on the following: strengthening domestic demand; raising labour input; exploiting new sources of growth in climate change mitigation.