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German economy to grow 2.3% in 2018, says finance ministry

The German economy is on an upward trend despite data showing growth was weaker in early 2018 than in late 2017, Reuters reported, citing the finance ministry.

For 2018, the finance ministry expects the economy to grow by 2.3% in 2018.

Economic output increased by 0.3% in the first quarter after growing by 0.6% in the fourth quarter of 2017. The finance ministry cited sickness, industrial strikes and an above-average number of public holidays for the quarter as reasons for the decline in output.

"The macroeconomic conditions, which remain favorable, and current economic indicators suggest the economic upturn will continue," the finance ministry reportedly said in a monthly update.

The ministry said industrial orders were stable at an "extraordinarily high level," adding that export activity at German companies was likely to benefit from the global economy's strong development.

A strong German labor market, wage rises, moderate inflation and an increase in pensions from the middle of 2018 would mean solid income development that would spur private consumption, said the ministry.