RWI institute forecast GDP 3.7pct

BERLIN: Germany's RWI economic institute said on Thursday it had raised its economic growth forecast for this year to 3.7 percent, pointing to strengthening domestic demand and favourable conditions due to low interest rates.

"The Germany economy is still experiencing a strong recovery," it said. The upward revision compares to the RWI's previous forecast for 2011 made in March of 2.9 percent.

However, the institute cut its gross domestic product (GDP) forecast for next year to 2.3 percent from its previous forecast of 2.4 percent, citing a slowdown in global growth and a cooling of some emerging economies.

Copyright Reuters, 2011