BERLIN, Oct 22 (Reuters) - Germany's economy should continue to grow at a modest pace and exports should rise in coming months, the Finance Ministry said on Thursday.
In its monthly report, the ministry said a mix of exports and private consumption had driven growth in the third quarter and that industry was headed toward further growth.
"Forward-looking economic data signal that the economic recovery should continue moderately," the ministry said. "Exports are likely to continue on an upward trend given the clearly rising demand to industry from abroad."
Germany pulled out of its sharpest recession since World War Two in the second quarter, and senior policymakers have said growth likely accelerated in the third quarter.
However, government stimulus has played an important hand in this and participants at a meeting of Angela Merkel's conservatives this week said the chancellor believed the economy was heading for "extremely serious months" at the start of 2010.
Last week, the government revised up its gross domestic product (GDP) forecasts for 2009 and 2010, though the Bundesbank has warned the recovery is not yet self-supporting.
The economy is now expected to contract by 5.0 percent in 2009, and grow by 1.2 percent next year. In April, the government forecast the economy would contract by 6.0 percent in 2009 and expand by just 0.5 percent next year.
The ministry added total economic activity was still low and that under-utilisation of capacity continued to pose a considerable risk for employment. (Reporting by Brian Rohan; editing by Chris Pizzey)