BERLIN – The German government is raising its forecast for the country’s economic growth in 2014 to 1.7 per cent and says there should be a healthy increase in exports.
Wednesday’s forecast was just above the 1.6 per cent growth that the government predicted in April. It left this year’s growth outlook unchanged at 0.5 per cent.
It’s predicting a pickup in exports, a traditional strength of Europe’s biggest economy, after they increased only sluggishly this year. The forecast is for exports to grow 0.3 per cent in 2013 and 3.8 per cent next year.
Faster economic growth should boost the already-healthy labour market. The government says the number of people in work should increase next year to 42 million from 41.8 million this year, with some 2.9 million unemployed.