Germany’s central bank, the Deutsche Bundesbank, has today lifted its growth forecast for the economy.
The German economy, which is Europe’s largest, is expected to grow by 3% this year – much higher than its previous forecast of 1.9%.
“More than half the decline in production triggered by the crisis has been made good,” the Bundesbank said. “Favorable conditions abroad and domestic factors both helped.”
Its forecast comes just a week or so after figures revealed the German economy grew by a record 2.2% in the second quarter – the fastest quarterly growth in 20 years.
The figures smashed analysts forecasts who had expected growth of around 1%.
The strong growth was boosted by exports, helped by a weaker euro. On an annual basis, exports were 29% higher.
In related news, the German economy ministry recently suggested the economy will grow by around 3% this year.