German institutes see 2010 growth 3.5 percent: sources

14th October 2010, Comments 0 comments

Germany's top economic institutes have revised sharply upwards their 2010 growth forecast for Europe's top economy to 3.5 percent from 1.5 percent, sources told AFP on Thursday.

For 2011 the institutes, who were due to release their twice-yearly report later on Thursday, expect gross domestic product (GDP) to expand by around two percent and for unemployment to fall to less than three million.

Exports-dependent Germany was hit hard by the global downturn, with GDP contracting 4.7 percent in 2009, the sharpest drop since World War II. Unemployment, however, did not rise as sharply as feared.

Chancellor Angela Merkel's centre-right government currently forecasts 1.4 percent growth this year, but ministers have indicated that the projection will be raised on October 21.

© 2010 AFP

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