UPDATE 1-Germany raises 2010 growth sights after Q2 surge

* GDP grows 2.2 pct q/q in Q2

* Beats all forecasts in Reuters poll of economists

* Econ minister: full-year growth well above 2 pct possible

(Adds details, economy minister)

BERLIN, Aug 13 (BestGrowthStock) – Germany’s economy grew 2.2
percent in the second quarter, well above forecast and its
biggest gain in 23 years, boding well for a first estimate of
euro zone numbers later on Friday.

The surge led Economy Minister Rainer Bruederle to say
growth of well above 2 percent was possible for the full year —
above the government’s official forecast of 1.4 percent but in
line with the more upbeat end of analysts’ expectations.

The euro (EUR=: ) gained ground after the data and European
stock markets rose on opening. But analysts remain cautious
about the pace of growth going forward as budget cuts kick in
across Europe in the second half of this year.

“Looking ahead, it is almost needless to say that the
current growth momentum is hardly sustainable in the coming
months,” said Carsten Brzeski, economist at ING Financial
Markets.

“With the one-off impact from the construction sector and
normalizing of export growth, German growth will return to more
ordinary growth numbers,” he added.

The Federal Statistics Office’s preliminary
quarter-on-quarter reading compared to a Reuters consensus
forecast for a 1.3-percent expansion. (ECONDE: )

First-quarter growth was revised up to show growth of 0.5
percent, after being previously reported at 0.2 percent.

Year-on-year, the economy grew by 4.1 percent in the second
quarter, the data showed. This followed a revised 2.1 percent
expansion in the January-March period and beat expectations for
2.4 percent growth year on year.

“Positive impulses … came both from the domestic economy
as well as from abroad,” the Statistics Office said in a
statement.

“The dynamics of investments and of exports had the biggest
part in the upswing; but expenditure in private and state
consumption also contributed to the growth of the GDP.”

In other positive news from Germany, steelmaker ThyssenKrupp
(TKAG.DE: ) raised its outlook for this year after its
third-quarter earnings beat estimates on the back of robust
demand from the automotive and engineering sectors.

Preliminary euro zone economic growth data, due at 0900 GMT,
are expected to show the eurozone expanded a slower 0.7 percent
in the second quarter after 0.2 percent growth in the first
three months of the year.
(Reporting by Paul Carrel and Annika Breidthardt; editing by
Patrick Graham)

UPDATE 1-Germany raises 2010 growth sights after Q2 surge