Reply #24: German economic recovery continues apace

[Ghost Dog]

http://www.ft.com/cms/s/48da1e4c-5d1f-11db-9d15-0000779e2340.html

The German economy is growing at its fastest rate since 2000 and companies have begun to re-hire after five years of downsizing.

The German government will on Friday add just less than a percentage point to its gross domestic product growth estimate for this year, underlining the robustness of the recovery under way in Europe’s largest economy.

A senior government official involved in compiling the new forecast told the FT that the government had yet to settle on a precise figure, but that it would be at the top end of a 2-2.5 per cent range, up from the 1.6 per cent forecast made in January.

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Economists have been surprised by the vigour and breadth of the recovery in Germany. The economy, heavily reliant on exports, is now benefiting from healthy corporate investment.

Companies have begun to hire more staff. The number of employees in the country has risen steadily from 38.3m to 39m between January and August.

“Private consumption is the one indicator that is not quite where it should be,” the official said. “But given the improvement on the investment front, I would expect consumption to rebound shortly.”

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