BERLIN (Reuters) - Germany’s BDI industry association is more optimistic about the prospects for Europe’s biggest economy than it was three months ago due to cheap oil, strong private consumption and a weak euro, its president said on Sunday.
“For this year we expect gross domestic product (GDP) growth of about 2 percent,” BDI President Ulrich Grillo told Handelsblatt business daily. In January, the group forecast growth of 1.5 percent.
While expressing concern about economic developments in Russia and Brazil, Grillo pointed to India, the United States, Spain and Britain as bright spots that could help Germany, traditionally strong on exports.
“Europe is profiting from the stimulus of low interest rates, but in the long term structural reforms are required,” he told the paper.
Last month, Germany’s panel of economic advisers raised their growth forecast to 1.8 percent for 2015 from its previous estimate of 1.0 percent, citing cheaper oil and a weaker euro.
Last year the German economy grew 1.6 percent.
Reporting by Madeline Chambers; Editing by Andrew Heavens