The IfW economic institute raised its German growth forecast for 2014 while lowering its 2013 forecast to 0.5 percent from 0.6 percent.
Gross domestic product in Europe’s largest economy will expand by 1.8 percent next year, more than the 1.5 percent forecast by the Kiel-based institute on March 14, according to an IfW report published today.
The consumer price index will probably increase by 2.1 percent in 2014 from a forecast 1.7 percent inflation rate this year, the IfW report said.
The German government will probably post a surplus of almost 3 billion euros ($4 billion) next year, IfW said.
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