Germany eyes three percent growth in 2010: report

15th August 2010, Comments 0 comments

The German economy ministry has pencilled in around 3.0 percent growth this year, more than double the previous estimate, following the strong expansion seen in the second quarter, reports said Sunday.

The Spiegel weekly and the Welt am Sonntag said that unlike in the past, growth in Europe's biggest economy was being driven by domestic demand and not just by exports, making it more resilient to weaker conditions elsewhere.

Preliminary data from the statistics office on Friday showed that German gross domestic product (GDP) grew 2.2 percent quarter-on-quarter in the period April to June, the fastest expansion since reunification in 1990.

The government is due to update its official growth forecast -- currently 1.4 percent -- in October, Spiegel said. In 2009, Germany suffered its worst recession since World War II, with GDP contracting by 4.7 percent.

© 2010 AFP

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