Germany raises 2011 growth outlook

The upswing is on firm ground and is now self-sustaining, Economy Minister Rainer Bruederle said as he presented the report in Berlin, according to AP. He said private consumption will be the prime driver of growth going forward.

Reports showed that Germany remains one bright spot in an otherwise bleak European scenario marked by the sovereign debt crisis. The ZEW economic-sentiment indicator jumped to 15.4 points in January, nearly double economists' expectations of 7 points, and up from 4.3 in December.

The current economic conditions indicator rose to 82.8 points from 82.6 points, below the outlook of 83.7 percent.

Improved business sentiment, significant progress in addressing unemployment and an export boom helped Germany power ahead of other eurozone economies last year. Berlin expects the unemployment rate to fall to 7 percent in 2011 from 7.7 percent in 2010.

Data released last week showed the German economy expanded at a rate of 3.6 percent last year, the fastest pace of growth since reunification.