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Friday 21st of January 2011
January 19, 2011    

Germany lifts 2011 growth prospects

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by Kay Murchie

Europe’s powerhouse, Germany, is expected to see growth of 2.3% for 2011, as domestic demand is expected to strengthen.

Europe’s largest economy will grow much faster in 2011, the Government said today, with the latest forecast much higher than the 1.8% estimated in October.

Economy minister Rainer Bruederle said the economy had “achieved the comeback of the year in 2010″, adding that 2011 would be “a good year”.

Despite the ongoing problems in the euro zone as the debt crisis threatens weaker economies, Germany continues to surge ahead and lead the recovery in Europe.

Last week, Germany posted growth of 3.6% in 2010 – the strongest pace since reunification in 1990, the Federal Statistical Office said.

Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.

Furthermore, the labour market is strong in Germany. The latest figures from the Federal Labour Office show that unemployment stands at 3.15 million.

The latest figures meant the unemployment rate held steady at 7.5% and the jobless rate is expected to fall to 7% this year.

Germany’s job market is much stronger than in many other countries and many believe it is the result of the “Kurzarbeit” scheme, introduced by the German Government, designed to prevent mass redundancies.

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