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She
spoke as the German government raised its growth forecast for
this year to 1.5 percent from a previous estimate of 1.4
percent. It maintained its forecast for 2018 growth at 1.6
percent.
Zypries said that the booming construction sector, helped by a
low interest rate environment created by the European Central
Bank as well government investments in infrastructure, was
providing a strong impulse for the economy.
The ECB's expansive policy has helped revive the euro zone
economy. It has also particularly helped boost private
consumption in Germany, which is one of three main growth
drivers alongside construction and increased state spending.
The ECB meets in Thursday and is expected to keep policy
unchanged. Sources told Reuters this week, however, that many
ECB ratesetters see scope for sending a small signal in June
toward reducing monetary stimulus.
Zypries said the German economy appears to be shrugging off
uncertainties linked to Britain's vote to leave the European
Union, protectionist policies in the United States, China's push
for more new-energy vehicles, and political risks in Turkey.
She said that the good shape of the world economy, which is
expected to grow 3.5 percent this year, would lift German
exports and encourage export-oriented German firms to invest.
"We know that uncertainties hamper investments and this is
totally understandable but not good," Zypries said. "Therefore
we need to ensure that the world economic environment improves
and that fair and free trade bring about better growth and
living standards."
Zypries said that Germany's high current account surplus, which
has been criticized by the United States, the International
Monetary Fund and European Commission, would fall from 8.3
percent of output in 2016 to 7.3 percent next year.
"The current account surplus should fall ... not least because
of solid domestic consumption and higher crude oil pric
es," the ministry said in a statement.
(Graphic by Jeremy Gaunt; Editing by Madeline Chambers/Jeremy
Gaunt)
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