The biggest European economy is expected to keep its growth in the first half of 2015 and continue to expand as strongly as at the end of 2014, Germany's central bank has stated.
According to Bundesbank, "The German economy is likely to increase strongly in the first
quarter of 2015 following a surprisingly strong expansion at the end of
2014."
The body noticed that driven by foreign trade, private consumption and house construction, "the vigorous economic upturn" would continue in the second quarter.
There were also signs of revival in the business investment.
Consumption was expected to be spurred by a stable labour market and strong wage increases, and to gain momentum from falling energy prices which would increase the purchasing power of German households.
The bank said that the saving rate of households increased together with private consumption at the end of 2014. It suggested that "additional scope" for private consumption was not fully exploited.
"The sharp increase in retail sales in January indicates that this is now increasingly happening," Bundesbank added.
Strong private consumption helped the German economy to expand by 0.7 percent in the last quarter of 2014 after it narrowly avoided a recession during the summer months, lifting the growth of the whole year to 1.6 percent.
