Bundesbank ups growth forecasts

|By:, SA News Editor

Germany's Bundesbank has increased its growth outlook and now expects the country's economy to expand 0.5% this year and 1.7% in 2014.

Previously, the central bank had projected growth of 0.3% and 1.5% respectively.

The Bundesbank also forecast that GDP will increase 2% in 2015.

The bank said growth is being mainly driven by domestic demand, helped by low interest rates and growing incomes.

"The German economy is in good shape: the unemployment rate is low, employment is rising, and wage growth is returning to normal," Bundesbank President Jens Weidmann said. (PR)

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