Germany Boosts ‘10 Growth Forecast

The German government raised its economic growth forecast for the year to 1.4% amid a recovery in exports, but cautioned that there is still great uncertainty over the outlook, Manufacturing.Net reports. The outlook was up from the 1.2% growth forecast by the government in mid-October, and Economy Minister Rainer Bruederle said he still is staying “at the lower end of forecasts.”

The economy technically emerged from recession in last year’s second quarter but still contracted by 5% overall in 2009. Economic recovery abroad, particularly in Asia, is expected to help German exports, although they won’t return to pre-crisis levels in 2010.

The government predicted a 5.1% increase in exports this year, following last year’s steep decline. It forecasts that imports will rise by 3.4%, recovering from an 8.9% fall in 2009.