Ifo Raises German Forecast as Economy on Track to Boom

By Andrea ThomasFeaturesDow Jones Newswires

Germany's Ifo institute has raised its growth forecast for the county's economy, citing a buoyant manufacturing sector and strong private consumption and construction.

The institute now forecasts 2.6% growth for 2018, compared with the 2% predicted previously. It has also raised its forecast for 2017 growth to 2.3% from 1.8%.

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"The German economy is in great shape. This is mainly due to manufacturing, which is clearly benefiting from an improved economic outlook in the euro area and the rest of the world and will clearly ramp up its export and investment activity," Ifo said.

"Although their contribution will diminish somewhat, private consumption and construction will also continue to grow strongly," it added.

Write to Andrea Thomas at andrea.thomas@wsj.com

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December 14, 2017 05:05 ET (10:05 GMT)