BERLIN – A group of leading German economic think tanks has raised slightly its forecast for growth this year to 1.9 per cent and is predicting a further improvement to 2 per cent in 2015.
The forecast issued Thursday compared with October’s prediction of 1.8 per cent growth by the four institutes, an outlook that is closely watched in Germany. Europe’s biggest economy grew by only 0.4 per cent last year but has been showing signs of accelerating.
The think tanks noted in their report that industrial production has been rising for months, factory orders are increasing and business and consumer confidence are improving.
They say that “although demand from emerging economies is now less lively, the economy is recovering in the rest of the euro area, which is Germany’s most important market.”