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Germany Forecasts a Balanced Budget by 2014 as Economy Grows

Germany’s Finance Ministry said it forecasts a balanced budget by 2014, earlier than previously projected, after economic growth bolstered the public finances.

Germany forecasts a budget deficit of 41.5 billion euros ($58.7 billion) this year, or 1.5 percent of gross domestic product, down from 80.5 billion euros in 2010, the ministry said in a statement in Berlin today. Debt is likely to decline to 71 percent of national output by 2015 from 83.2 percent last year, it said.

“Germany contributes with this development significantly to a stabilization of the euro area,” the ministry said. “Germany remains an anchor of stability in Europe.”

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