Germany's leading economic institutes are sounding an upbeat note on the German economy in their spring forecast, despite rising inflation and the eurozone debt crisis.
Germany's leading economic research institutes have made bright forecasts for the German economy following a year of industrial production that exceeded expectations. According to the joint spring forecast of the eight think tanks, Europe's biggest economy will see a 2.8 percent rise in growth, lower unemployment and less debt.
"It increasingly looks like the German economy will be experiencing another year of invulnerability," said ING Bank economist Carsten Brzewski in an interview with news agency dpa.
This comes despite the economic disruption caused by Japan's nuclear crisis and rising energy prices resulting from unrest in the Arab world. Last year, Germany recorded growth of 3.6 percent following its deepest recession in six decades in 2009.
Much of the optimism can be attributed to a buoyant industrial sector that has benefited from a wave of domestic demand for its goods. Industrial orders in February rose by 2.4 percent over a 3.1 percent increase in January.