German government raises GDP growth prediction to 2 percent

German government has raised the growth outlook for 2017 to two percent from earlier estimate of 1.5 percent. The growth outlook for 2018 has been raised to1.9 percent from earlier estimate of 1.6 percent. The stronger outlook for global economy and increased export demand has led the German authorities to raise their outlook.

The Europe’s largest economy has witnessed growth in domestic consumption and production has improved over the last few months, keeping in mind the export demand. During August, the industrial output jumped by three percent. German exports also went up by 3.1 percent during August.

The official statement said, "The German economy is enjoying a steady and broad-based upswing, underpinned by a solid domestic foundation. The economy in Germany has gained broad momentum and will continue to grow in the coming years."

After recent IMF upgrade for global economy, stock markets across the world have been trading strong. The U.S. stock market has been leading the rally in stocks as investors are expecting Trump government to bring in tax reforms. Lower taxes would mean much higher growth for many sectors.

While Spain is facing political uncertainty due to Catalonia referendum, the IMF report projects stronger growth for Spain in 2017 and 2018. Spain and Greece have suffered economically over the past few years and growth in economy would surely help the European market.