"The German economy is back on a stable and broad-based recovery path"
- Sigmar Gabriel , Economy Minister
According to the Economy Ministry, German economic growth will pick up steam this year as domestic demand strengthens; however, foreign trade will weigh on export-oriented economy for a second consecutive year. Europe's number one economy, which expanded strongly during the early years of the Euro bloc's crisis but has since slowed, will grow 1.8% this year, which is more than four times faster than in 2013. Berlin had previously expected the 1.7% growth for the year 2014.
Shipment abroad will rise by 4.1% following a subdued performance last year. Imports is seen to increase by 5.0%, thus foreign trade will subtract 0.1 percentage points from GDP growth. That should slightly reduce the nation's current account surplus, dispelling some of the criticism that the country depends too much on exports for growth and has not done enough to boost domestic demand, which would help struggling Eurozone members.
Separately, GfK market research group indicated that the spending of private households would increase by 1.5% in real terms this year, compared to a rise of 0.5% to 1.0% for the European Union as a whole.
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