German government to lift 2021 GDP growth forecast to 3.5% – Reuters

The German government is expected to revise its Gross Domestic Product (GDP) growth forecast higher to 3.5% from 3% in January's report, Reuters reported on Monday, citing sources familiar with the matter.

In 2022, the German government sees the economy expanding by 3.6%. The government reportedly believes that the better-than-expected growth dynamics seen in the last quarter of 2020 justifies the upward revision. 

Market reaction

Germany's DAX 30 Index recovered modestly from session lows on this headline and was last seen trading flat on the day at 15,275.