German jobless rate drops more than expected

Experts 'optimistic' of country's prospects amid European crisis

BERLIN - German unemployment dropped more than economists forecast to a fresh two-decade low in January, bolstering economic growth as the region's fiscal crisis threatens to undermine export demand.

The number of people out of work fell a seasonally adjusted 34,000 to 2.85 million, the Nuremberg-based Federal Labor Agency said on Tuesday. That's the biggest drop since March.