06.09.201806:14:00UTC+00Ifo Lifts Germany's Growth Outlook

The German economy regained impetus and this dynamic is set to carry over into next year, the Ifo Institute said Thursday.

According to Autumn Forecast, the largest euro area economy is likely to expand 1.9 percent each this year and next, before a gradual slowdown in 2020.

Earlier, the think tank had projected 1.8 percent expansion for both 2018 and 2019. Nonetheless, Ifo said there will be no return to the high growth rate of 2017.

Ifo expects capacity utilization in the German economy to remain clearly above average and increases in wages and prices to continue to accelerate. Private consumption is set to be the main driver of economic expansion in 2018 and 2019.

Further, the think tank observed that the export sector will continue to benefit from a world economic climate but this effect will fade gradually over the forecasting period.