The German government today stuck to its economic growth forecast of 1.7% for this year, despite a slowdown in emerging markets.
Strong domestic demand is replacing exports as the main pillar of Europe's largest economy.
"Germany's economic upswing will continue this year and next," Economy Minister Sigmar Gabriel said. "Our growth model has become more domestically driven."
Other euro zone countries were benefiting from German demand, which was drawing more foreign goods, Gabriel added.
In 2017, the government expects economic growth to slow to 1.5%, mainly because of extraneous effects such as more public holidays falling on normal week days, Gabriel said.
He also said the global growth outlook remained fragile, citing weaker demand from major export destinations such as China and countries in Latin America.
The German government expects employment to reach a record of 43.5 million this year and nearly 44 million in 2017.
That should further propel domestic demand and push up tax revenue, enablingthe government to increase state spending.
"Thanks to its strong economic position, I'm confident that Germany will master the challenges of accommodating and integrating the refugees," Gabriel said.
