German economy to grow by 1.8% this year: government

15th April 2014, Comments 0 comments

The German economy, Europe's biggest, is to grow by 1.8 percent this year and 2.0 percent next year, the government said in its latest updated forecasts on Tuesday.

"The German economy is in a solid upturn," Economy Minister Sigmar Gabriel said in a statement.

"Growth has a broad and stable basis. The driving force is domestic demand," Gabriel said, pointing to "continued favourable developments on the labour market, strong increases in household income, positive business sentiment and rising investment."

Just last week, Germany's leading economic think tanks raised their growth forecasts for this year and next year, but warned of headwinds from new government policies.

The institutes predicted that the German economy would expand by 1.9 percent in 2014.

That would mark a big increase from 0.4 percent in 2013, and then it would grow by 2.0 percent in 2015, they said.

© 2014 AFP

0 Comments To This Article