BERLIN (MNI) – The German government on Wednesday confirmed its GDP
growth forecasts for this year and next at 0.7% and 1.6%, respectively.

On the back of robust private consumption, the main growth driver
will be domestic demand, Economics Minister Philipp Roesler told
reporters here. Real disposable income is to rise by 3.3% this year and
by 3.1% next year, he said.

Still, the minister cautioned that risks from the international
environment remain high: “The European sovereign debt crisis has not
been solved yet.”

Moreover, due to rising oil prices, inflation could become a risk
to Germany’s upswing, Roesler warned.

“The ECB has our support so that it can return to its normal mode
of monetary policy and can concentrate on its clear mandate, assuring
price stability,” he said

The growth forecasts will be the basis for the government’s tax
estimate council to issue new tax revenue projections on May 10.

–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com

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