German businesses forecast record 3.4 percent growth in 2010

21st August 2010, Comments 0 comments

The German Chamber of Commerce and Industry (DIHK) now expects the country's economy to grow by a record 3.4 percent this year, its chief Martin Wansleben said Saturday.

"The recovery is expanding," Wansleben told the weekly Der Spiegel, which is to hit newsstands on Monday.

Businesses are investing again and "even consumption is accelerating thanks to favourable developments in the labour market," he added.

The forecast is considerably higher than the revised 3.0 percent forecast issued Thursday by the Bundesbank, Germany's central bank, and would see Europe's largest economy tie the growth record it set in 2006.

The federal government also plans to revise its previous forecast of 1.4 percent growth after the economy expanded by 2.2 percent in the second quarter, the strongest quarterly increase since the country was reunified in late 1990.

© 2010 AFP

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