German figures offer hope

The German economy is continuing to grow strongly, with domestic demand gaining pace and there is no danger of inflation on the horizon, economy minister Rainer Bruederle said yesterday.

Bruederle said the German government would raise its official 2011 growth forecast from 2.3 per cent on Thursday. German media reported on Saturday the 2011 forecast would be raised to 2.5 per cent, but Bruederle said the target was still being discussed.

He added: "We're enjoying growth that is both very stable and very powerful. I assume the forecast will be above the previous target of 2.3 per cent."