German economic growth slashes deficit: report

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Germany's finance ministry has slashed its forecast of the budget deficit this year from 80 billion euros to less than 50 billion thanks to strong growth recovery, according to the weekly Der Spiegel.

In its edition to appear Monday, the weekly says higher growth was resulting in nearly seven billion euros more in tax revenue than was predicted at the beginning of the year.

Forecast of new debts dropped from more than 80 billion euros in January to 65 billion in July. Projections for 2011 are currently based on a deficit of 57.5 billion but the government target is now up to 10 billion euros lower, according to Der Spiegel.

© 2010 AFP

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