German government raises 2020 GDP growth forecast to 1.1% from 1%

The German economy is expected to expand by 1.1% in 2020, compared to 1% announced in the previous report, the country's economy ministry said on Wednesday. 

"The German economy is gradually overcoming its weak phase, industrial production is expected to recover slowly in the course of the year," the statement read. The ministry expects the domestic demand to drive the overall growth thanks to record-high employment and higher wages while acknowledging that trade-related risks remain.

Additionally, economy minister Altmaier said the government need to help companies invest more by cutting taxes.

EUR/USD reaction

The EUR/USD pair largely ignored these remarks and was last seen trading at 1.1003, down 0.15% on the day.