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German economy to grow by around 0.6 percent in second quarter: Finance Ministry

FILE PHOTO: Cargo wagons are parked at a train station in Munich, Germany, May 6, 2015. REUTERS/Michaela Rehle/File Photo

BERLIN (Reuters) - The German economy is humming and set for solid growth despite external risks such as the unknown outcome of Brexit negotiations and U.S. President Donald Trump’s future trade policies, the German Finance Ministry said on Thursday.

“The current picture of economic indicators suggests that the economic upswing continued vigorously in the second quarter,” the ministry said in its monthly report, pointing to rising industrial output and buoyant business morale.

German gross domestic product (GDP) likely expanded in the second quarter by a similar rate as in the previous three months when the economy grew by 0.6 percent on the quarter, it said.

“However, risks arising from the Brexit negotiations and from the future U.S. trade policy remain,” the ministry added.

The Federal Statistics Office will publish preliminary second quarter GDP growth figures in mid-August.

The International Monetary Fund (IMF) has raised its growth forecast for the German economy. It now expects it to expand by 1.8 percent in 2017 and by 1.6 percent in 2018 in real terms.

The German government remains more cautious and so far has stuck to its estimates of 1.5 percent for 2017 and 1.6 percent for 2018, non-adjusted for workdays. This would be below the 1.9 percent in 2016, which was the strongest rate in five years.

Reporting by Michael Nienaber; Editing by Toby Chopra