Investing.com - The rate of economic growth in Germany is likely to gain momentum in the first quarter after experiencing an upswing in the winter months, the country's central bank said Monday.
In its monthly report, the Deutsche Bundesbank said the underlying momentum of the economy should have "increased noticeably" in the final quarter of 2013, citing an improved outlook for businesses and households.
"However, this should only fully show up in the GDP growth rates at the turn of the year, when the increased order inflow translates into production," the bank said.
"In the euro zone, if burdens from the debt crisis still exist, the signs are increasing for a gradual economic recovery," the Bundesbank added.
Official data on Friday showed that Germany’s gross domestic product rose 0.4% in the fourth quarter, ahead of expectations for 0.3% growth, and expanded 1.3% on a year-over-year basis.
Germany’s government upgraded its forecast for economic growth last week, saying the economy will now grow by 1.8% in 2014, higher than its earlier forecast of 1.7%, driven by strong domestic demand.