German 2014 gross domestic product is expected to be higher than the forecast in made in April, government sources have told German media. The upward revision is caused by improving global business.
The German government would revise its 2014 growth prediction to 1.7 percent from 1.6 percent in April, sources close to the Economics Ministry said Tuesday.
Speaking to German media reporters, the unnamed sources also said that the gross domestic product (GDP) for this year was expected to come in at 0.5 percent, meaning that Berlin wasn't going to change its April growth prediction for 2013.
The news came one day ahead of the release of the government's official autumn forecast, due to be presented by outgoing Economics Minister Philipp Rösler on Wednesday.
In 2012, the German economy grew just 0.7 percent, coming down from a robust expansion of 3.6 percent in 2011 and a staggering 4.4 percent in the year before.
This year, growth was hampered by a harsh and long winter, the government said in its April report, compounding problems from sluggish global growth and the recession in the eurozone.
For 2014, the government in Berlin appears to bank on a global recovery that would help boost Germany's traditionally strong export industries. Berlin's optimism is shared by the country's four leading economic think tanks, which last week even predicted 1.8 percent GDP growth in 2014.
The International Monetary Fund (IMF), however, is more cautious about Europe's biggest economy forecasting German output to reach just 1.4 percent next year.
uhe/kms (AFP, dpa)