BERLIN, June 20 (Xinhua) -- The Munich-based Ifo Institute for Economic Research Tuesday raised its 2017 and 2018 economic growth outlook significantly for Germany.
For the current year, it now expects 1.8 percent GDP growth instead of the previously forecast 1.5 percent.
In the coming year, it should amount to 2.0 percent, topping the 1.8 percent of the last forecast.
"The German economy is strong and stable. We are currently experiencing such a strong first half-year that the momentum will carry us into the coming year," Ifo's head of economic forecasting, Timo Wollmershäuser, said in a statement.
According to Ifo, the upturn is being driven by internal demand, especially by the construction industry and by private consumption as in the previous year. And now the dynamism spreads to manufacturing.
Besides, the upswing of the economy in the euro area and the rest of the world is boosting Germany's exports.
The think tank forecast German employment to rise to 44.62 million this year and then to 44.6 million in 2018, the highest level ever.
At the same time, the jobless rate is seen easing to 5.7 percent in 2017 and at 5.5 percent next year.
The inflation rate is expected to rise to 1.7 percent in 2017 and to 1.6 percent in the coming year.
The budget surplus will decline from 26.4 billion euros (29.39 billion U.S. dollars) to 19.1 billion euros in this election year but will then increase again to 22.9 billion euros in 2018.
Further, Ifo now expects Germany's surplus of the current account, the subject of harsh international criticism, will increase in absolute figures from 261 billion to 265 euros in 2017 and to 279 billion euros in 2018. Its share of economic output, however, will remain largely stable at around 8.3 percent. (1 Euro = 1.11 U.S. dollars)
