BERLIN (Reuters) – The German government will raise its economic growth forecast for this year to 0.3% from the previously expected 0.2%, sources told Reuters on Friday.
According to officials, the government expects gross domestic product (GDP) to grow by 1.0% in 2025.
Inflation is expected to fall faster than previously expected, falling to 2.4% this year. The government had previously projected the inflation rate in 2024 to be 2.8%.
These forecasts are part of the government's draft spring forecasts, which Economy Minister Robert Habeck is expected to release next Wednesday.
The Ministry of Economy declined to comment.
Germany's economy, Europe's largest, was the weakest of the euro zone's major economies last year, hit by high energy costs, weak global orders and record high interest rates.
Although inflation and energy prices are expected to ease this year, growth is expected to remain weak.
The International Monetary Fund this week cut its GDP forecast for Germany by 0.3% in both 2024 and 2025, forecasting growth of 0.2% this year and 1.3% next year.
(Reporting by Holger Hansen; Writing by Maria Martinez; Editing by Rachel More, Sabine Walrub, Matthias Williams, Alex Richardson)
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