Germany to lift growth forecast to 3.0 percent: report

4th September 2010, Comments 0 comments

The German government will lift this year's growth forecast to 3.0 percent, up from the previous 1.4 percent, due a stronger than expected recovery, a German newspaper reported on Saturday.

Berlin also expected an improvement in the job market with the number of unemployed dropping below three million, Neue Osnabrucker Zeitung reported quoting senior figures in Chancellor Angela Merkel's Christian Democratic Union party.

In April, the federal 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, the Eurozone's top economy recorded growth of 2.2 percent, the highest since reunification in 1990.

The number of unemployed stood at 3.19 million, or 7.6 percent, in August.

"In 2011, the government sees clear signs of continuing growth and positive developments in the job market, even if the growth rate is less strong than this year," Georg Schirmbeck, a budget expert for the party, told the newspaper.

© 2010 AFP

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