Germany, Europe's top economy, will grow by more than expected this year, the economy minister said today, raising his growth forecast to 1.4% from a previous estimate of 1.2%.
Rainer Bruederle said he was 'cautiously optimistic' for the future of the German economy, one of the world's top exporters, but warned that uncertainty surrounding its development was still high.
'We have got past the trough, but the way back up will be slow and painful,' the minister added.
Last year, Germany suffered its worst slump since World War II, with a contraction in output of 5%. The country is also saddled with a mountain of debt and expects a record €85.8 billion in new borrowing this year.
But forward-looking indicators recently have pointed to brighter times ahead, with the closely watched Ifo survey of business confidence rising for 10 consecutive months.
Exports, the backbone of the German economy, were expected to grow by 5.1% this year, according to the new projections, compared to a crisis-driven contraction of 14.7% in 2009.
