The German economy is continuing to grow strongly with domestic demand gaining pace and there is no danger of inflation on the horizon, Economy Minister Rainer Bruederle said on Sunday. Bruederle said the government would raise its official 2011 growth forecast from 2.3 percent on Thursday. German media reported on Saturday the 2011 forecast would be raised to 2.5 percent but Bruederle said the target was still being discussed.
"We're enjoying growth that is both very stable and very powerful," Bruederle told Bild am Sonntag newspaper.
"I assume the forecast will be above the previous target of 2.3 percent. Due to the increased international risks, a bit of caution is needed before making a serious forecast."
Germany has recovered faster than expected from its deepest post World War Two recession, and economic indicators show it is on a strong growth path despite a sovereign debt crisis affecting some euro zone member states and other external risks.
Last week, the government reported growth in industrial orders and production data for February that far exceeded expectations. It also said unemployment fell in March to its lowest level in two decades.
Imports are also booming - another sign of robust growth in Europe's largest economy. In the two months to February, imports from countries in the European Union rose 21.2 percent in unadjusted terms compared with the same period in 2010.
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