The German economy, the biggest in the 12-country euro zone, could grow by at least 2% this year and its public deficit could be back within EU limits for the first time since 2001, German Finance Minister Peer Steinbrueck said today.
German gross domestic product (GDP) growth could reach a figure 'with a two before the decimal point', Steinbrueck told the lower house of parliament, the Bundestag.
The public deficit could amount to 2.8% of GDP, comfortably below the limit of 3% laid down in the Stability and Growth Pact. The German deficit ratio was last below 3% in 2001.
Officially, Berlin is pencilling in economic growth of 1.6% for 2006, but most observers believe it will come out higher.
