The German government's panel of economic advisers expects Europe's largest economy to grow by 1.5 percent this year, one of its members was quoted as saying by a newspaper on Saturday.
Although known as the five "wise men," the prestigious panel includes one woman, Beatrice Weder di Mauro. "At present, we expect growth of one-and-a-half percent," Weder di Mauro said in an interview with German daily die Welt. Nevertheless, Weder di Mauro stressed that the panel remained less optimistic than many other leading forecasters.
"We're going less by sentiment indicators and don't yet see a powerful upswing backed up by hard facts," she said. The Ifo institute's closely-watched index of German business confidence eased slightly last month but remains close to its highest level in 15 years. Some analysts have forecast German growth could reach two percent this year.
Initial pointers to the strength of economic activity in the second quarter have been positive, although growth in the first quarter fell short of expectations.
In November, the wise men forecast the German economy would grow by one percent this year. Since then, however, several have said expansion of 1.5 percent could be possible. The government is predicting growth of 1.6 percent in 2006.
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