Germany sees growth topping 2.5 percent this year: minister

16th September 2010, Comments 0 comments

German Economy Minister Rainer Bruederle said on Thursday he expected the German economy, the biggest in Europe, to grow by at least 2.5 percent this year, a far sunnier outlook than originally forecast.

Gross domestic product in 2010 could "grow by significantly more than 2.5 percent" on the back of a stronger-than-expected recovery, Bruederle said in a speech to the Bundestag lower house of parliament.

In April, the German government left its growth forecast unchanged at 1.4 percent, but last month the central bank revised its forecast to "around 3.0 percent", up from 1.9 percent.

In the second quarter, German recorded growth of 2.2 percent, the highest since national unification in 1990, thanks to stronger domestic consumption as well as robust exports, the backbone of the German economy.

The daily Neue Osnabruecker Zeitung reported earlier this month that Germany would in October lift its official 2010 growth forecast to 3.0 percent and see a marked improvement in the job market with the number of unemployed dropping below three million.

© 2010 AFP

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