Germany gives big boost to 2017 growth outlook

The German government on Wednesday gave a substantial lift to its economic growth forecast for 2017, saying it now expects 2.0 percent expansion rather than the 1.5 percent predicted in April.

Berlin's sunnier outlook for the remainder of the year was based on "a broad-based recovery with a solid foundation in the domestic economy", the Economy Ministry said in a statement.

And faster growth in the world economy and international trade should favour export powerhouse Germany, it added.

Looking ahead to 2018, the ministry lifted its growth projection to 1.9 percent, up from 1.6 percent.

The government economists see little slack in the German economy, with companies using a high proportion of their capacity, unemployment remaining at historic lows and inflation

stable.

Wednesday's expectations upgrade from Berlin comes hard on the heels of a similar boost from the International Monetary Fund, which also predicted the German economy would expand 2.0 percent.