Germany’s growth could slow slightly in the first quarter, but the rebound in Europe’s largest economy remains robust and widespread thanks to the strength of domestic and foreign demand, the Finance Ministry said on Friday.
The German economy, which grew by 0.6 percent in the last quarter of 2017, is enjoying a boom driven by consumption. Corporate investments and exports have added as additional factors of expansion in recent months.
“The economic indicators are signaling a slight weakening in the growth dynamics of the Gross Domestic Product at the beginning of the year,” the ministry said in its monthly report pointing to industrial production, which in February was lower than expected.
“However, the economic upturn in Germany remains robust and is widely supported by both external and domestic factors,” the ministry added.
The German government will update its growth forecast for 2018 next week. In January, it projected that GDP will expand 2.4 percent this year.
Germany’s leading economic institutes said on Thursday they expect the economy to grow 2.2 percent this year and 2 percent in 2019.