BERLIN (MNI) – The German government expects the country’s deficit
to fall this year below the 3% of GDP limit set under the EU Stability
and Growth Pact, German business daily Handelsblatt reported Tuesday.
In its annual economic report — to be released Wednesday — the
government forecasts a public deficit of around 2.5% of GDP in 2011,
Handelsblatt said.
Annual average unemployment is seen by the government falling
markedly below 3 million this year, the newspaper wrote and the
government forecasts an average unemployment rate of 7% in 2011,
Handelsblatt added.
The government projects 2011 GDP growth to be 2.25%, Handelsblatt
wrote.
German Economics Minister Rainer Bruederle said earlier on Tuesday
that “the likelihood is high” that German GDP growth will top 2% this
year. In October, the government had predicted 1.8% growth for 2011.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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