German economy expected to grow 2.8% in 2011

| April 8, 2011 | 0 Comments

It looks as if Germany will continue to drive the recovery in the euro zone after forecasts said the economy will expand by 2.8% this year.

In a closely monitored twice-yearly report, the country’s leading economic institutes upwardly revised an earlier forecast of 2% growth.

The report said: “In the spring of 2011, the world economy is enjoying an upswing, mainly due to positive results from emerging economies. Germany too is experiencing a strong upturn.”

Germany, which is Europe’s largest economy, emerged from recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.

The economy posted growth of 3.6% in 2010 – the strongest pace since reunification in 1990, according to the Federal Statistical Office.

The country’s unemployment rate continues to fall and its job market has performed much better 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.

Last year, Germany’s unemployment rate plunged to 7.7% from 8.2% in 2009 as a result of the Government initiative.

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