The German government has upgraded its forecast for economic growth this year, with finance minister Hans Eichel predicting an expansion of gross domestic product (GDP) of more than 1.5% in 2004.
So far, Berlin has been pencilling in GDP growth of between 1.5-2% this year but has indicated momentum was likely to come in at the lower end of that range.
'I no longer need to use the comment we've always made so far, that growth will come at the lower end of the range, because the latest data seem to indicate it could be more,' Eichel said today.
Economy and Labour Minister Wolfgang Clement has said several times that he believes German growth could come out higher than 1.5% this year.
The country's leading economic research institute Ifo yesterday raised its 2004 growth forecast to 1.7% from 1.5% previously.
As for next year, Eichel confirmed his forecast for growth 'at the top end of the range,' or near 2%. But the minister pointed out that while exports were buoyant, 'there is still no real upturn in domestic demand.'
