Reuters: Germany expects 2007 GDP growth of up to 2.0 pct

STOCKHOLM/BERLIN, Jan 15 (Reuters) - The German government expects Europe's biggest economy to expand by as much as 2.0 percent this year, after growth hit a six-year peak of 2.5 percent in 2006, Economy Minister Michael Glos said on Monday.

Asked during a visit to Stockholm what GDP growth would be in 2007, Glos said: "Between 1.5 percent and 2.0 percent." The forecast compares with an October prediction of 1.4 percent.

"There will be growth, but it will be lower (than 2006)," he said during a visit to the Swedish capital.

A source in Berlin familiar with the government's latest economic report, due to be published at the end of this month, said the 2007 forecast would be fixed at 1.7 percent for budget purposes.

The graph shows a 1% expected growth, which was until recently the expectation of one institute. The government expected 1.4%, the IMF 1.3%, etcetera. But right now it looks like it's going to be around 1.7%.