The German economy will expand faster than expected this year, the government said today, as it raised its growth forecast for Europe's economic powerhouse.
Germany will grow by 2.6% in 2011, Economy Minister Rainer Bruederle said, hiking a previous forecast of 2.3% made in January. The growth rate will slow slightly next year, coming in at 1.8%, Bruederle added, leaving Berlin's earlier forecast unchanged.
'The recovery in Germany is on firm footing,' Bruederle said.
Germany, the world's second largest exporter after China, suffered a crippling recession in 2009 with its economy contracting by nearly 5%. But Europe's biggest economy has since staged a storming comeback and last year registered its strongest performance since the country was reunified in 1990.
The dynamic economy is also helping to reduce jobless lines. Average unemployment is projected to be 2.9 million in 2011 and 2.7 million in 2012, according to the forecasts - well under the politically sensitive three-million mark.
'German citizens are benefiting from the recovery via higher incomes and more jobs,' the minister said.
