BERLIN: The German government expects the economy to expand by 1.5 percent this year and by 1.6 percent in 2016, two senior government sources told Reuters on Tuesday.

In October the government had predicted that Europe's largest economy would grow by 1.3 percent this year.

The sources said the forecasts were decided on in final consultations on the government's annual economic report, which is due to be approved by the cabinet and published on Wednesday.

Before the final round of consultations, a source told Reuters on Monday that Berlin was expecting growth of around 1.5 percent this year and next.

Germany's gross domestic product increased by 1.5 percent in 2014, according to preliminary figures, thanks to private consumption and foreign trade.

Copyright Reuters, 2015