The German economy is emerging from years of sluggish growth

Michael Glos said he expected to see economic growth of between 2.0% and 2.5% this year, according to Germany's Bild am Sonntag newspaper.

The government's official forecast for 2006 is 1.6%, but many analysts now expect growth to top 2% this year.

Germany is emerging from several years of sluggish growth, which had put a brake on other eurozone economies.

The recovery is being partly driven by an increase in consumer spending - particularly on the back of the recent World Cup football tournament, which was staged in Germany - as well as strong exports of German goods abroad.

However, experts have questioned whether the current economic upturn can be maintained.

Mr Glos told Bild am Sonntag that he expected to see "the beginning of a turnaround" in Germany's labour market, suggesting that unemployment would eventually fall below four million.