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Germany ups forcasts, sees 2010 GDP rising 1.2 pct

Published 10/16/2009, 07:15 AM
Updated 10/16/2009, 07:18 AM
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BERLIN, Oct 16 (Reuters) - Germany revised up its gross domestic product (GDP) forecasts for 2009 and 2010 on Friday, saying Europe's largest economy had emerged from its deepest post-war downturn in the summer and was on a recovery path.

The economy is now expected to contract by 5.0 percent in 2009, compared to a forecast drop of 6.0 percent last April, and grow by 1.2 percent next year versus a prior forecast for meagre growth of 0.5 percent, the Economy Ministry said.

"The German economy emerged from its lowpoint in the summer after a year of contraction," Economy Minister Karl-Theodor zu Guttenberg said in a statement. "The chances are good that we can build on the upward trend next year."

The ministry expects the unemployment total to rise to 4.1 million next year, below a prior forecast for 4.62 million. Exports are seen rising 4.3 percent in 2010. In April, they had been forecast to rise by a mere 0.9 percent.

(Writing by Noah Barkin)

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