Germans Starting To Feel Bullish

The German government has revised up their economic forecasts. They now expect the country’s GDP to contract “only” 4-5% this year, rather than the 6% previously expected.

Having officially come out of recession since August, the country is expected to grow again in 2010.

Unemployment even fell in September, though the future trend remains uncertain.

AFP: Nevertheless, senior figures in the German economy including Merkel and Bundesbank President Axel Weber have warned that the path to recovery will be bumpy.

Weber said recently that Germany would not return to 2008 levels of prosperity until 2013.

Merkel and her new coalition partners, the pro-business Free Democrats, are currently working on a plan to haul Germany out of its slump following their election victory on September 27.

Despite gaping holes in the public purse, the new government is likely to slash taxes in a bid to boost consumption and simplify the complex tax system.

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