Germany raised its official forecasts for economic growth this year amid high employment and solid domestic consumption, which is supported by lower oil prices. According to the Economy Ministry, the country's GDP will increase by 1.5% compared to the previous forecast for growth of 1.3 percent.

Growth despite difficulties

"The German economy returned to the path of growth despite geopolitical instability last year. The government expects the introduction of minimum wage and the increase in state pension payments to further stimulate consumer demand," said Minister of Economy and Energy, Sigmar Gabriel, quoted by the Wall Street Journal .

Rise in forecast was expected by most analysts as the depreciation of oil and the euro will no doubt boost Europe's largest economy. This adds to the upward development of the German labor market in recent months, which led to higher than expected tax revenues. Thanks to this government managed to achieve a balanced budget a year earlier than expected.