Germany Reaffirms Economic Growth Outlook Despite Debt Crisis 

(MENAFN - Saudi Press Agency) The German economy will post modest growth this year despite signs that a recession is gaining ground across Europe in the wake of the region's debt crisis, the Economics Ministry in Berlin said Wednesday.

According to dpa, the ministry expects economic growth in Germany to slow to 0.7 per cent this year before accelerating to 1.6 per cent next year with solid domestic demand, rising wages and a pickup in exports helping to power the economy. Europe's biggest economy grew by 3 per cent in 2011.

'The German economy is regaining momentum,' said Economics Minister Philipp Roesler, releasing his ministry's latest growth projections. 'Germany is and remains the locomotive of growth in Europe,' he said.

The ministry's latest forecasts were in line with its previous forecasts.