The German government is more than doubling its economic growth forecast for this year to 3.4 percent and lifting next year's outlook to 1.8 percent.
The Economy Ministry's forecast published Thursday superseded predictions made in April of 1.4 percent growth this year and 1.6 percent in 2011 _ estimates long since overtaken by events.
The German economy, Europe's biggest, shrank by 4.7 percent last year, easily its worst performance since World War II.
But it has seen an export-led rebound this year, growing by a powerful 2.2 percent in the second quarter compared with the previous quarter.
The government stopped just short of matching a forecast last week by leading economic think-tanks, which predicted growth of 3.5 percent in 2010 and 2 percent next year.