Think Tank Raises German GDP Forecast Amid Higher Foreign, Domestic Demand - Market Talk

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Germany's economy is powering ahead thanks to higher exports and strong domestic demand that benefits from a favorable labor market, IWH institute says, raising its growth forecast. The think tank predicts economic growth of 1.6% for this year and 1.8% for 2018, compared with 1.3% and 1.6% predicted previously for the two years. "The upward revision...is mainly a result of the strong first quarter," IWH says in its report pointing to the notably stronger contribution from foreign trade. The institute is more optimistic than the German government, which in April only predicted 1.5% growth for this year and 1.6% for next.(andrea.thomas@wsj.com)

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June 08, 2017 06:14 ET (10:14 GMT)