German Government Raises Growth Projection for 2017

By Nina Adam Features Dow Jones Newswires

The German government on Wednesday slightly raised its economic growth projection for this year, saying Europe's largest economy is growing solidly.

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The German economy is forecast to expand by 1.5% this year and by 1.6% in 2018, according to Economics Minister Brigitte Zypries. The government in January projected 1.4% growth in 2017.

The minister said that Germany's economy is staying on a solid growth path despite global uncertainties, with healthy jobs creation supporting domestic demand.

Chancellor Angela Merkel's conservative parties hope to benefit from the country's strong economic track record in elections this September.

Berlin-based think tank DIW on Wednesday was also upbeat about Germany's growth prospects, pointing to solid orders for Germany's industrial companies. "Industrial production has picked up notably since the beginning of the year and business sentiment is extremely good," said DIW economist Ferdinand Fichtner.

Write to Nina Adam at nina.adam@wsj.com

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(END) Dow Jones Newswires

April 26, 2017 05:57 ET (09:57 GMT)