By Nina Adam

 

FRANKFURT--A group of leading German think tanks on Thursday raised their growth estimates for Europe's largest economy, but warned that a further increase in trade tensions between the world's largest economies would undermine the global expansion.

"The German economy is experiencing a boom," the group said in its spring report, which usually serves as a reference for the German government's own economic predictions.

The think tanks now forecast growth of 2.2% in 2018 and 2.0% in 2019. Last fall, they predicted growth of 2.0% in 2018 and 1.8% in 2019.

The better outlook comes despite a recent string of soft economic data in Germany and elsewhere in the eurozone, sliding business sentiment and the threat of greater protectionism.

The think tanks said that special effects, such as an unusually high number of sick days and bank holidays, had dampened German exports and production at the start of the year, but the economy should pick up speed again following this brief "dent."

 

Write to Nina Adam at nina.adam@wsj.com

 

(END) Dow Jones Newswires

April 19, 2018 04:28 ET (08:28 GMT)

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