Germany raises 2014 growth outlook to 1.7%: ministry sources

22nd October 2013, Comments 0 comments

Germany expects growth of 1.7 percent for 2014 for Europe's biggest economy, slightly higher than the 1.6 percent it had predicted in April, economy ministry sources said on Tuesday.

For the current year, the government stuck with its prediction of 0.5-percent growth of gross domestic product, the sources said, confirming a report by the Frankfurter Allgemeine Zeitung daily.

The outgoing Economy Minister Philipp Roesler was to release officially on Wednesday the government's economic "autumn forecast".

Affected by the debt and recession troubles of southern eurozone members, the export-led German economy saw growth slow to 0.7 percent last year, and the recovery was hampered by an unusually harsh and long winter in 2012-13.

The latest forecast brings the government almost in line with a more optimistic prediction of 1.8 percent GDP growth next year, issued last week by four leading economic institutes.

They had predicted that the German economy would benefit from an improving world economic climate as well as stronger consumer demand and investment at home.

The International Monetary Fund has predicted German economic growth of 1.4 percent in 2014 after 0.5 percent in 2013.

© 2013 AFP

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