The German government has trimmed back its economic forecast for the current year, but insisted that Europe's biggest economy was still "in good shape". 

In its annual economic report, the government said it expected gross domestic product (GDP) to expand by 1.7% in 2016, fractionally slower than an earlier forecast of 1.8%. 

"Germany's economy is in good shape," the report stated. 

Growth is currently driven by low oil prices, the weak euro and interest rates that are close to zero. 

But experts say the German economy is also beginning to feel the pinch from the slowdown in developing economies such as China. 

According to a preliminary estimate by federal statistics office Destatis earlier this month, GDP expanded by 1.7% in 2015, fractionally faster than the 1.6% recorded in 2014. 

At the same time, Germany clocked up a surplus on its public budget of €16.4 billion, equivalent to 0.5% of GDP and the second year in a row that Germany's public finances have been firmly in the black, Destatis said. 

The German government said it hopes that the budget will remain in the black again this year.

German consumer confidence stable - Gfk

Consumer confidence in Germany is stable, continuing to shrug off - at least for now - terror warnings and economic uncertainties regarding the massive influx of refugees, a poll found today. 

"The consumer climate remains unfazed by the increased risks," market research company GfK said.

"However, the heightened threat of terrorism, as well as growing concerns in the population that Germany may not be able to cope with the influx of refugees and asylum-seekers could unnerve consumers in the coming months," GfK said.

"This would have a lasting effect on the consumer climate," it added. 

Looking to February, GfK's headline household confidence index was forecast to remain steady at 9.4 points. 

"The consumer climate is stabilising at overall high levels," GfK said. 

"Both economic expectations and the propensity to spend are rising slightly, while income expectations have taken a knock," it added.