In their biannual projection for Europe's largest economy by the government commissioned the five leading economic think tanks said a strong recovery is not in sight.
However there, still "is an upward tendency of the economy after its deep plunge in the financial crisis," said economist Joachim vagina when presenting the expertise at a press conference in Berlin.
Industrial orders have grown, exports are recovering, businesses are confident and they are holding on to their staff, he said. The number of unemployed - minus the statistical effects - is currently almost that of fall of 2008, said sheath.
"That comes as a surprise to almost all forecasters," he said.
"That comes as a surprise to almost all forecasters," he said.
The forecast expects unemployment will drop slightly from an average 8.1 percent this year to 7.9 percent next year.
Germany's economy shrunk by 5 percent in 2009 and experts had originally projected dramatic increases in unemployment.
Germany's economy shrunk by 5 percent in 2009 and experts had originally projected dramatic increases in unemployment.
The think tank said one reason for the better, than-expected performance was the government's decision to subsidize companies that kept staff despite lower production.
The downside is a deteriorating state of public finances, said sheath. He projected deficits at 4.9 percent of GDP for this year and 4.2 percent for 2011th
He urged the German government to start consolidating the federal budget without hurting the recovery.
Internationally, governments have to start presenting their exit strategy from the current "very expansionary economic policies" he said. The German experts expect worldwide output will grow by 2.9 percent in 2010 and by 2.7 percent next in 2011 and world trade will expand by 6.5 percent this year and.
Internationally, governments have to start presenting their exit strategy from the current "very expansionary economic policies" he said. The German experts expect worldwide output will grow by 2.9 percent in 2010 and by 2.7 percent next in 2011 and world trade will expand by 6.5 percent this year and.
While economies in Asia grow at high rates, recovery in industrial nations is not yet sustained, they said.
They expect the U.S. economy to grow by 2.8 percent this year and by 2.0 percent in 2011, according to their expertise.
They expect the U.S. economy to grow by 2.8 percent this year and by 2.0 percent in 2011, according to their expertise.
The European Union as a whole is predicted to only have 0.9 percent growth this year and 1.4 percent next year.
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