Germany Rebounding in Face of Crisis, Institutes Say: Economy

Germany is experiencing an upswing that will help drive down unemployment and narrow the budget deficit even as the European debt crisis continues to pose the biggest threat to growth, the leading economic institutes said.

Europe’s biggest economy will expand 0.9 percent this year, up from a prior estimate of 0.8 percent, the four groups including Munich-based Ifo said today in their twice-yearly economic outlook for Chancellor Angela Merkel’s government. The economy will grow 2 percent in 2013, they said.