Germany’s central bank has upwardly revised its growth outlook for the country’s economy. Driven by accelerating demand, notably from the eurozone, ‘robust’ growth will prevail throughout 2014.
The German economy had made a very buoyant start to 2014, and would maintain the momentum for the whole of this year, the Bundesbank said in its bi-annual report released Friday.
In 2014, economic expansion in Europe's biggest economy would accelerate to an annual 1.9 percent, the German central bank said as it revised upward its previous growth forecast by 0.2 percent.
"Even if it does not maintain the high rate of growth seen in the first quarter, the Bundesbank's economists are still confident about Germany's growth prospects," the Bundesbank report statement said.
The bank attributes the rise in growth to the strengthening of the domestic economy as well as the ongoing improvement in the economic situation of the industrial countries. Moreover it would benefit from the gradual recovery in the euro currency area, it added.
According to data released by the country's statistics office, Destatis, on Friday, German exports grew strongly in April, following declines in the previous two months.
In particular, the countries in the eurozone took in significantly more goods from Germany in a sign that the recovery in the crisis-hit currency area was gaining traction.
On balance, German exports in April gained by about 3 percent, the highest monthly growth in almost two years.
Exports as well as growing domestic demand would help support Germany's gross domestic product (GDP) also next year, the Bundesbank said, projecting a GDP increase of 2 percent for 2015. In 2016, growth was expected to slightly fall back to 1.8 percent, the central bank added.
uhe (Reuters, dpa)